NEC eyes $100 mn biz from 3G services in India

Japanese firm NEC Corporation is eyeing a business of $100 million from India over the next 2-3 years from a new technology 'Femtocell', which will allow telecom operators to extend network coverage of 3G services indoors.

"EC is looking at revenues of more than $100 million over the next 2-3 years from this technology," NEC Europe General Manager (Indoor Solutions -Network Solutions Division) Anil Kohli told reporters here.

"Often, 3G consumers face trouble receiving signals while they are indoors. Femtocell technology helps ensure they get full coverage, along with significant capital and operating expenses reduction for mobile operators," Kohli said.

He, however, declined to comment on the savings that the telecom companies can make by using Femtocel.

"NEC has eight contracts globally with mobile operators for femtocell system deployments. In India, a trial of the NEC Femtocell solution is in progress with a 3G mobile operator," Kohli said.

It has deployed the Femtocell solutions for SFR in France, SoftBank Mobile in Japan and Network Norway.

Most operators, who bagged 3G licences, expect to roll out services soon.

While state-run telcos BSNL and MTNL along with private player Tata DoCoMo have already launched their 3G services, others are expected to roll out high-speed internet services in the coming quarters.

"Companies have paid huge amounts for securing 3G licences and if the service is not upto the mark, customers will move to other operators and hence, telcos need to be sure that there is extensive network coverage, both outdoors and indoors," he said.

Besides, NEC India is targetting revenues to the tune of $200-250 million for the fiscal ended March 31, 2011.

"With the entire DoT's (security) clearance issue, this year's growth will be a bit subdued and we expect revenues (without submarine lines business) to be about $200-250 million, similar to last year's numbers," NEC India Deputy Managing Director Takayuki Kano said.