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Kavveri Telecom to launch more wireless products soon

Kavveri Telecom to launch more wireless products soon

Bangalore: Bangalore-based manufacturer of base station antennae and radio frequency (RF) products for cellular operators, Kavveri Telecom Products Ltd (KTPL), is taking the acquisition route to launch new telecom wireless products for markets in North America and India.

The company has acquired two Canada-based companies early this year, and is in the process of acquiring two more companies in the US by January for $10 million (Rs39.6 crore) each.

The company did not disclose the names of the new additions, limiting itself to giving the information that these are technology companies with expertise in RF products and antennae.

The new acquisitions will add 12-15 patents to KTPL’s 16-strong patent portfolio built around base station antennae and RF products.

KTPL brought Til-Tek Antennae Inc. in January for $2.5 million and DCI Digital Communications Inc. for $ 2 million in May. The research and development teams at Til-Tek and KTPL are jointly designing a triple-band antenna that can be used simultaneously for wireless technologies CDMA, GSM and UMTS (more popularly referred to as 3G or third generation) phone networks.

This product will be launched in India as well as North America.

“With the launch of the triple-band base station antennae, operators will need to put in only three antennae instead of six to cater to GSM and 3G, thereby reducing the cost of roll-out of 3G networks and optimally using the existing tower infrastructure," said C. Shivakumar Reddy, managing director of KTPL.

Reddy said it is also ready to commercially launch a product related to Evdo that was developed entirely by Til-Tek. Evdo, short for ‘evolution, data only’, is a standard for high speed wireless services.

The launch is also set for January, but only in North America, where trials were undertaken in June.

KTPL’s market share is expected to increase from the current 6% to 15% in fiscal 2010, Parikshit Kandpal, equity analyst from Sushil Stockbroker Pvt. Ltd said, adding that the acquisitions help expand the company’s product portfolio.

Any intellectual property “acquisition will give them the technology advantage to compete with the likes of Andrews Corp. and Kathrein India Pvt. Ltd, which currently hold 80% market share in India for base station antennae and RF links," Kandpal said.

He expects KTPL’s stand-alone revenue (Rs53 crore in 2006-07), to grow by 110% in fiscal 2008 (aided Rs40 crore through acquisitions) and 60% the year after.

KTPL’s clients in India include telecom vendors Motorola India Pvt. Ltd and Ericsson India Ltd, phone firms Reliance Communications Ltd, Vodafone Essar Ltd, Idea Cellular Ltd, Aircel Cellular Ltd and Spice Communications Ltd, as also local units of Alcatel Lucent, Nokia Siemens Network and ZTE Telecom.

Shares of KTPL closed at Rs221 on the Bombay Stock Exchange on Thursday, shedding 2.6% on a day when the bourse’s benchmark index was almost flat at 19,163 points.

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