IBM inks $200 mn deal with Datacom; wins Idea contract

IT major IBM today said it has bagged an order believed to be worth $200 million from Videocon Group's telecom arm Datacom, which is slated to launch cellular services this year, for providing IT infrastructure and services.

Although the companies did not disclose the contract amount, sources said it was around Rs 950 crore.

"As a new entrant into the telecom market in India, we understand the significance of partnering with a company that can provide the necessary impetus for growth in this intensely competitive market," Videocon Group Chairman VN Dhoot said in a statement.

Datacom has licences to provide GSM services across the country and plans to launch them in four circles this year. It is aiming at national presence by the end of 2010.

IBM has also won a contract from cellular firm Idea for providing messaging and data services, although the company statement did not reveal the worth of the contract.

Under the 7-year contract, IBM will provide Idea with complete Service Delivery Platform (SDP), which will enable publishing and distribution of content through multiple channels – SMS, MMS, WAP and Web.

It will also support 3G services, which enable high-speed access to Net and content like video, gaming and music.