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Zylog Systems Ltd, the Chennai-based software company, will invest another Rs 80 crore in its WiFi business in 2011-12, according to its Global Chief Financial Officer, Mr S.P. Srihari.
The company is a category ‘A' Internet Service Provider. It has nearly 30,000 paid subscribers for its WiFi Internet broadband services branded as Wi5 — a business that will fetch the company Rs 20 crore in revenues.
WiFi, which refers to ‘wireless fidelity' is networking technology that allows devices to communicate without wires.
Zylog has so far invested Rs 90 crore in its WiFi service that was launched in Tamil Nadu, Andhra Pradesh, Karnataka, Gujarat and Punjab from December 2009.
The service is currently available in 150 towns and through the expansion the company will reach another 180 towns in these States next fiscal, he told Business Line .
Mr Srihari said Zylog will invest Rs 20 crore from its internal accruals and the balance Rs 60 crore would be raised from bank debt.
The company's board met today and gave its approval on raising the funds, he said.
Through the expansion, the company expects revenue from WiFi business to be around Rs 54 crore by the end of March 2012 compared with Rs 20 crore expected by the end of the current fiscal.
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