The Hindu Business Line : Next generation network programme 21CN — BT scouts for Indian start-ups; may locate R&D base here

BRITISH Telecom (BT), which accounts for two per cent of the country's IT exports, is likely to set up a research and development (R&D) base in India even as it scouts around for partnerships with start-ups to drive its next generation network programme 21CN.

21st Century Network (21CN) is BT's £10 billion IP-backbone project spanning 160 countries. By 2010, this next generation network would power latest services such as broadband over mobile, triple play and seamless roaming among others.

"Things are changing here in India and we are keeping a closer eye on this," said Mr Matt Bross, Chief Technology Officer of the BT Group, when asked about the possibility of setting up a captive R&D unit in India. Mr Bross, who was in Bangalore recently, declined to spell out investment plans in India. BT's research and development work currently is done mainly at its centres in the UK and Malaysia. The company spends $250 million a year on R&D initiatives.

Impressed with the high-end capabilities and talent here, Mr Bross said the company was also looking around for partnering with Indian start-ups working on the cutting edge telecom technologies.

"We have recently set up a two-member team in India to scout for start-ups for a possible tie-up," he said. BT will be assessing their core competencies and hopes to "do more of it on an increasing basis."

BT is looking to partner with start-ups in areas of hardware design and engineering, which Mr Bross described as "the core competency of Bangalore companies" as well as access networks.

Companies that can do rapid prototyping of hardware and software are also being targeted, he said.

BT is in the process of identifying smaller start-ups, which are ready to take advantage of the globalisation, he said. "We will also talk to Nasscom, venture capitalists to narrow down the prospective companies," said Mr Bross said adding "As we develop the networks and systems architectures for 21CN, much will be done in sustained relationships with Indian partners."

Further, Mr Bross said, "To sustain and increase the investment, we need to look for meaningful engagements that will service the emergence of digital networked economy. India is clearly a significant piece of that."

"We feel that innovation genie is out of the bottle," said Mr Jean Marc Frangos, SVP, technology and innovation, BT Group adding the company was pursuing the open innovation model and that the use of standards was essential to the success of its project. However, Mr Frangos did not disclose the number of tie-ups that BT planned in India.

"The IT outsourcing engagements with Indian vendors are working well for BT," he said. BT currently outsources its IT development to a bunch of top tier Indian vendors that include TCS, Infosys Technologies, HCL and to its own joint venture Mahindra BT. Hundreds of engineers employed by these vendors are currently developing software for the UK telecom conglomerate's 21CN rollout. BT also outsources its directory services to vendors such as Progeon and HCL among others.

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