Datacom shortlists technology solutions providers

11 Aug 2008

Indian news source Business Standard is reporting that Datacom Solutions (Datacom), the telecom services arm of the Videocon Group, is in the final stages of negotiation with four companies for supplying technology solutions. The value of the contract is estimated at INR30 billion (USD713 million) over a seven year period; it is understood that IBM, Tata Consultancy Services, Tech Mahindra and Wipro are the companies still in contention. Datacom has also recently issued a tender for 70 million lines, which Ericsson, Nokia Siemens Networks, ZTE, Alcatel-Lucent, Huwaei and Nortel have responded to.

It is also reported that talks have failed between the Videocon Group and Himachal Futuristic Communications Ltd (HFCL) to buy out the latter’s 36% stake in Datacom. Disagreements between the two parties about investment in the operator are understood to be the reason that Videocon is looking to buy out its partner. Datacom was awarded GSM concessions for all of India’s 22 circles in January 2008, and the company was planning to commence network operations from 15 August, although this recent development could cause delays.