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HCL Perot inks JV with British firm

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CIOL Bureau
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NEW DELHI: Indian software firm HCL Perot Systems (HPS) has tied up with

British wireless telecom solutions firm Aircom International to offer better

network management to cellular operators, the two companies said on Thursday.

The $80-million Indian company, which will hold 49.5 per cent stake in the joint

venture, Aircom HPS Wireless Services (AHWS), will pitch in with its software

development expertise and provide the core engineering team, officials said.

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"We see this venture as a method to have privileged access to esoteric

technologies in wireless space," said HPS chief executive officer Vineet

Nayyar. Aircom will bring its know-how in developing network interfaces and

optimization of cellular networks to the joint venture.

The new company is looking at revenues of Rs 250 million ($5.39 million) in

the first year of operations and hopes to clock a turnover of Rs 1 billion in

its third year, said AHWS chairman and Aircom managing director Stephen Mockford.

He added the company would have a paid-up capital of $1 million and would make a

30-35 per cent profit in the first year of operations.

The joint venture's package, marketed under the brand name 'Enterprise',

helps cellular operators optimize their networks and reduce costs by cutting the

number of cellular towers and base stations. AHWS has already provided network

management solutions to Indian cellular operators BPL Mobile, RPG Cellular,

Spice Telecom and Birla-Tata-AT&T.

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Nayyar said he hoped to list HPS in the domestic markets by the end of the

year or the beginning of next year, depending upon market conditions and other

factors. HPS is equally owned by domestic software services company HCL

Technologies Ltd. and US-based Perot Systems Corp.

HPS said its net profit in 2000 was Rs 800 million while the turnover was Rs

4 billion. It hopes to clock a turnover of Rs 6 billion and a net profit of Rs

1.2 billion in 2001.

(C) Reuters Limited 2001.

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