Kavveri Telecom launches new subsidiary

Bangalore: Bangalore-based Kavveri Telecom Products (KTPL) has set up a subsidiary to develop and deploy telecom infrastructure solution that enhances the coverage of cellular networks within large buildings such as malls, cinema halls and high-rises.

The subsidiary Kavveri Telecom Infrastructure (KTIL) will invest about Rs 100 crore over two years in deploying the in-building infrastructure solution, which is based on radio frequency technology, in some 200 buildings mainly in Bangalore, Chennai, Hyderabad and Kochi, said Mr G. Shivakumar Reddy, Managing Director, KTPL.

'Initially, we are investing Rs 10 crore in the subsidiary and are exploring various options, including a combination of debt and equity to fund the deployment of the solution,' Mr Reddy said. Shares of Kavveri Telecom closed 5 per cent higher on the Bombay Stock Exchange at Rs 130.75 on Thursday.

KTIL intends to follow the build, operate and lease (BOL) model for offering the in-building coverage solution, in collaboration with property builders and developers. The plug and play facility would help telecom operators reduce the time to market their in-building signal enhancement services.

'A maximum of four operators could utilise the solution in a building,' Mr Reddy said, adding the pricing model is linked to the number of visitor footfalls.

KTIL would target all telecom service providers and operators and the beneficiaries would be large hotels, malls, commercial complexes, high rise residential buildings, airports, train and bus stations, where visitor footfalls are quite high.