Tulip expands MPLS enabled network in Gujarat

Tulip I-T Services Ltd is expanding point of presence (POPs) for its Multiprotocol Label Switching (MPLS) Virtual Private Network (VPN) in Gujarat.

"It is difficult to give an exact figure but we are already providing connectivity in around 55 cities in Gujarat and the connectivity is increasing every week because of few new orders we have received in the state," said Deepinder Singh Bedi, director - sales of Tulip IT Services Ltd.

The company is investing around Rs 75 crore in equipments alone to expand it's network with new technology MPLS VPN across the country. At present, the company's network is spread in 325 cities across the country.

"By the end of 2006, we expect our network to expand in 500 cities," claimed Bedi further added that the company is not targeting cities but the customers and their demands.

According to Bedi, currently only two companies are providing MPLS VPN service in the country.

"The other company is also in to retail business but we are only focusing on corporates," he said.

He said that the company do not want to compete with telecos for providing internet in retail business.

Refusing to disclose company's market share, he said, "I don't have a market share estimate within Gujarat but our share is fairly low because until now, we had not been marketing the MPLS VPN service, which is the fastest technology, aggressively since we only had a skeletal network in place."

He also said that the company has installed fiber optic cables (FOC) in top cities wherein, FOC is used as a backbone and POPs will be used for wireless last mile.

The IPO funds are now being deployed to literally put flesh-and-blood into the network and with our extensive reach, we intend not only to capture a major part of the market but also create the connectivity market in the areas that no one else ever reached, claimed Bedi.

Some of their customers in Gujarat include Angel Broking, Sanghi Cements and Hutch.

"As far as Gujarat is concerned, we are planning to put up large number of POPs for one of the largest service providers in the country," said Bedi.

Talking about value added services along with MPLS VPN, Bedi said, "Besides other existing business lines which include rural connectivity and network integration, we are currently intend to focus on our core MPLS connectivity business and certain value added services only," he added.

Bedi also claimed that the company will be having the largest MPLS enabled network.

"Post-IPO, our MPLS upgradation was in progress across the country and that will make our network the largest and entirely MPLS enabled network in the country," he claimed.

He further added that company's budget over the project is around Rs 130 crore.

Tulip IT Services Ltd is also working on project of government of Gujarat.

"We are currently, working with various wings of the Gujarat government for different projects but they are mostly on pilot phases," added Bedi.