The Hindu Business Line : Cisco offers BOT model to telecom players

New Delhi, June 16 In a bid to capitalise on the booming telecom service providers segment, networking solutions major Cisco is adopting a new strategy whereby it will build-operate and transfer an IP-based network for the operators. The company is in talks with a number of Indian players to deploy this business model, which is expected to save 15 per cent costs for the operator in the first year.

Speaking to Business Line, Mr Sameer Padhye, Vice-President, Worldwide Service Provider Line of Business, Customer Advocacy, Cisco said that the company was close to bagging 6 major deals in the South Asian region, worth $700 million. “This is a new business model for Cisco wherein we are enabling the service provider to deploy an intelligent network faster and much reduced costs.”

Why of new strategy

“Earlier telecom operators had a different network for mobile services, fixed line telephones, data related services and broadband. But now as IP-based platforms are being deployed, everything is getting converged on a single network. Cisco is a global leader in IP solutions and therefore operators would prefer to go with us than traditional equipment vendors who have been managing a single type of network till now,” Mr Padhye said.

Eyeing new players

Cisco is eyeing contracts from some of the new operators who have recently bagged the licence to offer telecom services in the country. “New operators have the advantage of not carrying legacy network and therefore they can start building a totally IP-based network. The BOT business model will suit them as they do not have the necessary skills to set up a network,” Mr Padhye said.

Cisco had earlier announced to make India its second headquarters. The company plans to bring in another 10,000 employees over the next 3 years. “The India-centric strategy has really worked for us as it has enabled us to be closer to our customers. It has also enabled Cisco to establish itself as an Indian company,” Mr Padhye said.

According to sources in the industry, Cisco is also talking with Bharti Airtel for a pan Indian Metro Ethernet network contract, for which the request for proposal has been floated. Mr Padhye refused to comment on the negotiations with Bharti.

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Cisco offers BOT model to telecom players