In a move aimed at staying relevant, the once premier research and development firm - Centre for Development of Telematics (C-DOT) - is now repositioning itself as a mobile application developer and telecom network security solutions provider.

The move is being seen as a last ditch attempt by the PSU to stay afloat by cashing in on the need for richer applications with the advent of 3G and wireless broadband services.

C-DOT was set up in 1984 to show case India's technical capabilities in developing cutting edge communication technologies but delays in executing projects and fast changing telecom environment left the State-run company far behind large multinational players from Europe and the US.

Delays impact

As a result of the delays some new wire line-based technologies it had developed including fibre access system and single base module exchange lost its relevance due to growth of competing technologies such as asymmetric digital subscriber line (ADSL) and mobile telephony.

The Comptroller and Auditor General in a report had stated that C-DOT had lost its relevance as it could not develop successful technologies.

The CAG had in fact told the Government to review the very existence of the PSU. Not wanting to shut down the company yet, the Government is now trying to push the R&D firm into a new direction.

Telecom security projects

?C-DoT has now repositioned itself and has started working as application service provider. It has also started focussing on national security-related projects,? said a DOT official.

The R&D firm, with 858 employees, has been given a number of telecom security projects including setting up the Centralised monitoring system, which will enable security agencies to monitor and intercept messages anywhere in the country without having to approach the telecom operators.

C-DOT is also working on a secured communications network for inter-departmental classified communication. It has also developed an Internet-monitoring solution for law enforcement agencies.

But will the change in strategy work for a company whose core strength so far has been in developing hardware? Market watchers reckon that unless C-DOT lessens its dependence on Government projects, it may not achieve its objective.

?More than 80 per cent of the existing telecom networks is managed by private players, so C-DOT can no longer sustain itself by going after projects from BSNL and the Government departments.

Even in the applications space, things change fast so C-DoT has to be nimble and quick,? said a former C-DoT officer.

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