SIS aims to sell 10,000 video telephony devices by Dec '09

Upbeat with successful trials after the soft launch of its video telephony devices, Ahmedabad-based IT solution provider, Sai Infosystems (India) Limited (SIS) expects to sell around 10,000 units of the same in the first two months of commercial launch that is expected in November this year. The company is rolling out video phone service in Gujarat in association with BSNL.

"We had successful trials of over 250 since the soft launch in May of our video telephony devices. Hence, we are expecting to sell roughly over 10,000 video telephony devices in two months of its commercial launch which is expected in last week of October or first week of November," said Vijay Mandora, director of Sai Infosystems (India) Limited. While the state-owned telecom operator will provide its broadband network, SIS is its technology partner which has developed a soft switch that will be installed on BSNL's network.

To run on a broadband connection provided by BSNL, the video phone service will require an IP network connectivity with a minimum bandwidth of 256 kbps. The IP audio device is set to cost around Rs 2,000-3,000 while the video device will be priced at Rs 15,000-16,000.

Moreover, the devices will be offered on either one time purchase basis or on monthly rental basis.

It needs to be mentioned here that earlier Ahmedabad-based Renovau Telecom India, a subsidiary of UK’s Renovau Telecom was also in the process of developing a carrier grade multi-media telephone exchange capable of switching DVD quality video telephony and video multi-casting, and was in talks with BSNL.

Given such projects, SIS is planning to raise funds in the region of Rs 100 crore to Rs 300 crore through venture capital or private equity in the near future.