Unicorn plans India foray

Telecom infra firm gears up for competition with GTL, Quipo.

US-based telecom infrastructure company, Unicorn Communications, is planning to enter the Indian market. It intends to commence operations in about three months and will offer telecom infrastructure such as mobile towers.

Unicorn will compete with existing players, including GTL, Quipo and American Towers Corporation.

"The bulk of the investment will go into developing a centralised research and development centre for engineering, planning and training in India," David Rottmayer, CEO Unicorn Communications, said.

In the long run, Unicorn plans to start a vocational training and development centre to address the shortage of telecommunication skills in India and other growing economies.

According to a joint study by Zenesys, a consultancy company, and the Indian Institute of Management, Lucknow, the market size of telecom infrastructure sector is estimated at $15.5 billion.

According to experts, 3,50,000 to 5,00,000 towers would be required in the next three years.

"Since the demand is huge, competition is bound to increase. In order to improve the telecom quality, there is a need to set up more towers," Romal Shetty, executive director and head, telecom, KPMG said.

According to the Zenesys study, India's telecommunication market exceeds existing capacity and has an effect on customer satisfaction.

"Telecom operators are facing numerous challenges due to the regulations concerning the sharing of active and passive infrastructure. They are shedding their assets, in mobile towers, to generate cash. This decoupling means bigger tower management challenges in the future," Saibal Sen, founder, Zenesys dded.

Unicorn will import specialised field camp equipment to work at the self-contained units in the rural areas. The company will buy most of the generalised transportation and construction equipment locally. It is in talks for infrastructure projects with telecom equipment companies, including Nokia, Seimens and Huawei, who already have a considerable presence in India.

"When we find a strategic local partner, we will enter into a joint venture relationship that makes sense for each party. Unicorn on its part will bring multi-skilled engineers, technicians and program management expertise - all of which is short supply in India," Rottmayer added.