Boosters, repeaters fan Shyam Telecom ambitions
Telecommunications equipment manufacturer Shyam Telecom Ltd is eyeing strong potential in the emerging market segment of home networking, reports M Rajendran.business Updated: Apr 18, 2007 20:08 IST
Telecommunications equipment manufacturer Shyam Telecom Ltd is eyeing strong potential in the emerging market segment of home networking, building on its traditional expertise in dish antennae to offer boosters linked to the antennae to enable wireless coverage inside homes and repeaters that enhance coverage in larger spaces such as malls and basement offices.
Shyam officials say they aim to get a substantial market share in $ 1.4 billion US market while hoping to capture 80 per cent of a Rs. 500 crore market in India for the segment.
The booster is an equipment the size of a small pizza box, which when wired with a dish antenna of the same size, is provides enhanced wireless coverage inside a house.
Both the equipment are becoming critical worldwide with emergence of high-rise residential buildings, malls and underground offices because these structures do not allow the signals to reach mobile phones, leading to call drops and bad connectivity.
In the US, the company claims to be successfully competing with big names in this business such as Andrew Corporation and ADC Telecom.
Shyam Telecom Ltd aims to improve its domestic market share from 65 per cent to 80 per cent in the next two years and plans to introduce Internet shopping to boost sales.
"We have set up a subsidiary in the US, Shyam Incorporated, to sell our equipments. And based on the success of the booster sale in US through the net, we will introduce it in India soon," N.Kumbhat, director, Shyam Telecom, told Hindustan Times.
The company currently sells the boosters for mobile services based on global system for mobile communications (GSM) technology and will soon launch the same product to for the code division multiple access (CDMA) technology used by companies like Reliance and Tata Teleservices.
The company is also in discussions with French mobile phone major Sagem to secure manufacturing rights in India. While the company currently sells mobile handsets through parts secured from Sagem in complete knocked down (CKD) units, it has firmed up plans to manufacture in India by next year.
It has identified a three acres land at Baddi in Himachal Pradesh to set up its mobile handset manufacturing unit. When quizzed about the prospects of its business being a late entrant, Kumbhat said, “We are not trying to topple the big players. Our conviction is that we would be able to manage a good profitable business since the mobile phone handset cake in India is still big and is getting bigger.”
He said the company has already sold one million handsets in 2006-07 and has set a target to double it this year in India, where the monthly demand for mobile handsets is at about eight million.