Vodafone to market Sistema Shyam's CDMA-based data services

Vodafone has signed a franchisee agreement with Sistema Shyam to sell CDMA-based data services on a revenue-sharing basis.

According to the agreement, Vodafone will market CDMA dongles under a new brand, Netcruise. The service will ride on Sistema Shyam's spectrum and network infrastructure. While billing and collection is to be done by Sistema Shyam, Vodafone will get a share of the revenue generated from Netcruise subscribers.

The service, which was launched as a pilot in few areas a month ago, is now being extended across the country.

Sistema Shyam offers mobile services under the MTS brand and has a network suited for data services based on EVDO technology. When contacted, an official spokesperson of Vodafone confirmed the agreement. “The partnership leverages core strength of both business groups i.e. the EVDO network of MTS and the branding and distribution experience of Vodafone,” the spokesperson said.

However, Netcruise tariffs are higher than the data plans under MTS's own brand mBlaze. “Vodafone is merely distributing an MTS product, which is differentiated by the brand and distribution strengths that Vodafone provides. MTS have chosen to differentiate the tariffs on this basis,” Vodafone said.

Vodafone, which until now has been offering GSM-based services in India, added that the CDMA dongles would help it to address a wider customer base.

“The Netcruise product is positioned quite differently in the market from Vodafone's 3G products and provides more options at varied price points to the customer. This helps meet all customer segments and needs,” the spokesperson said.

Market analysts said that with spectrum being scarce, this type of deal will be on the rise in the telecom space. Earlier, Tata Teleservices and Virgin Mobile had inked a similar deal.

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