The Government has decided to acquire the 51 per cent stake from Alcatel Lucent in the Chennai-based Research & Development centre.

The R&D centre was set up in 2005 to develop solutions for WiMax technology. Alcatel-Lucent owns 51 per cent stake in the R&D centre and the balance is held by Government owned C-DOT.

Proposal sent

C-DOT has sent a proposal to the Department of Telecom to take 100 per cent control over the centre, which has been accepted in principle.

The DoT has set up a committee to work out the modalities of the deal. According to an internal Government note seen by Business Line, the net worth of the R&D centre is in the negative. C-DOT has invested Rs 52 crore as equity and Rs 19 crore as loan.

Focus on key areas

Earlier, Munish Seth, President and Managing Director, Alcatel-Lucent –India, had told Business Line that the company wanted to reduce the stake in the venture to a minority status so that the Government can chase key areas like security.

“Instead of going to foreign entities to certify products, the Government can do this under the C-DOT Alcatel Lucent Research Centre (CARC),” Seth had said.

The R&D centre never took off due to rapid changes in technologies. Initially, the plan was to develop low-cost consumer premise equipment for WiMax technology for offering broadband services. But over the past few years, the ecosystem has moved towards Long Term Evolution (LTE) technology making the R&D centre rethink its plans.

CARC is now looking at products for green initiatives and rural broadband to leverage the centre’s capabilities.

(This article was published on July 5, 2013)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.