& cplSiteName &

AlcaLu, Bharti Form Joint Venture

Catherine Haslam
News Analysis
Catherine Haslam
4/30/2009
50%
50%

Bharti Airtel Ltd. (Mumbai: BHARTIARTL) and Alcatel-Lucent (NYSE: ALU) have formed a joint venture company to manage the future development and operation of the carrier's fixed voice and broadband networks.

The new legal entity will be operated by AlcaLu, which will hold a 74 percent stake, with Bharti Airtel owning the remaining 26 percent. An AlcaLu spokesman confirmed to Light Reading that the business AlcaLu will generate from the new venture will be worth $500 million over a five-year period.

The new venture will be responsible for the design, planning, deployment, optimization, and management of Bharti Airtel’s fixed line network, which is being migrated toward an IP-based infrastructure.

AlcaLu's role will include the management of equipment from other vendors, such as UTStarcom Inc. (Nasdaq: UTSI), which provides equipment for Bharti's emerging IPTV business. (See Bharti Profits From Mobile Boom.)

AlcaLu would not comment on whose equipment it would be managing or how, beyond saying that the company has considerable experience managing multi-vendor networks.

The joint venture will be staffed by employees from Bharti, who will provide knowledge of the existing network and the local market, and AlcaLu, plus some new hires.

Bharti Telemedia, the Airtel division responsible for its fixed-line network, offers DSL-based broadband services in 95 cities, has nearly 1.1 million broadband subscribers, and is activating more than 100,000 new broadband connections each month. At the end of March, India had 6.22 million broadband subscribers.

Speaking yesterday as the company's results were announced, Airtel's CEO Manoj Kohli explained that the company's fixed-line strategy is to concentrate on upgrading services in the 95 cities in which it operates, and that it doesn't have plans to expand its coverage beyond them. This focused approach is helping Telemedia increase its subscriber base -- it currently has 2.7 million customers, about 19 percent more than a year ago -- and generate monthly ARPU (average revenue per user) of 1,071 Rupees ($21.44).

Bharti is hoping the new relationship will help it cut operating costs and speed up its ability to offer more advanced multimedia services for its retail and business customers.

This is the fourth managed network services deal AlcaLu has signed with a fixed-line carrier during the past 18 months, suggesting growing support for the outsourcing model that has gained favor primarily amongst mobile operators.

The three other agreements are with Brazil Telecom, BT Global Services , and Telecom New Zealand Ltd. (NYSE: NZT; New Zealand: TEL). AlcaLu also has arrangements with mobile operators, including Reliance Communications Ltd. in India, with which the vendor has also formed a joint venture. (See BT Outsources Ops to AlcaLu, Kiwis Pick AlcaLu, and AlcaLu, Reliance Form Joint Venture.)

In total, around 180 million fixed and mobile subscribers are connected to networks managed by AlcaLu, although Bharti Airtel's mobile networks are managed by Ericsson AB (Nasdaq: ERIC) and Nokia Networks .

— Catherine Haslam, Asia Editor, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
ssrcons
50%
50%
ssrcons,
User Rank: Light Beer
12/5/2012 | 4:05:42 PM
re: AlcaLu, Bharti Form Joint Venture


 


> AlcaLu's role will include the management of equipment from other vendors, such as UTStarcom Inc. > (Nasdaq: UTSI), which provides equipment for Bharti's emerging IPTV business.


Possibly the Bharti part of the JV would manage this ...


BTW, note that IPTV is a very recent launch from Bharti (Jan 2009) and is a niche service,  currently only in the NCR with plans for other Indian metros (they will probably wait and watch before expansion); although this has been cooking internally since about 2006.


IBM supposedly has some kind of role in their IPTV service (or is it restricted only to their DTH service?)  Not sure how this pans out wrt the new JV.


ssrcons

Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
No Stopping Cable's Ethernet Gains

12|9|16   |     |   (0) comments


Vertical Systems' Erin Dunne explains why US cable operators, which now command a record-high 26% of the Ethernet market, will keep boosting their share.
LRTV Interviews
Fixing IoT Security Is an Ecosystem Challenge

12|9|16   |   05:34   |   (1) comment


Level 3 Communications' Chief Security Officer Dale Drew says service providers, manufacturers and even consumers must combine to halt massive DDoS attacks using IoT devices in botnets. The solution he has in mind includes reputation-based routing by the service provider but also more secure endpoint devices and greater consumer awareness.
LRTV Interviews
Cox Clears $2B in Business Revenue

12|8|16   |     |   (0) comments


Cox's Jeff Breaux discusses how the third-largest US MSO will reach the $2 billion revenue mark this year and plans to hit $3 billion by 2021
LRTV Interviews
Can Cable Climb Upmarket?

12|7|16   |     |   (0) comments


Carol Wilson and Alan Breznick assess cable's prospects for winning more enterprises in a landscape rocked by corporate M&A activity.
Women in Comms Introduction Videos
TalkTalk Exec: Find Your North Star at Work

12|7|16   |   3:38   |   (1) comment


Women need to find their purpose, a professional North Star, and create a personal board for themselves, according to Alex Tempest, director of partners at TalkTalk Business.
LRTV Interviews
Verizon: Beware Unknown Unknowns

12|7|16   |   04:58   |   (0) comments


Chris Novak, director of the Verizon Enterprise Solutions Risk Team, explains that enterprises who don't conduct a thorough audit of their assets often leave some things unprotected because they don't know they exist. Many times these unprotected assets are part of corporate M&A activity but left unshielded they can become a hacker's playground, he tells Light ...
LRTV Interviews
ETSI's CTO Talks NFV, 5G & NGP

12|5|16   |   09:45   |   (0) comments


Adrian Scrase, CTO at standards body ETSI, talks about the various initiatives and specifications developments related to NFV, 5G and NGP (next-generation protocols) that will underpin next-gen networks.
Women in Comms Introduction Videos
Korn Ferry Consultant: How to Find, Cultivate & Be the Best Talent

11|30|16   |   4:10   |   (2) comments


Erin Callaghan, a managing consultant for Korn Ferry Futurestep, shares strategies for companies to improve how they recruit and for women to ensure they don't get lost in the pipeline.
LRTV Custom TV
We Can Make the World More Sustainable

11|29|16   |     |   (0) comments


GeSI is a global e-Sustainability Initiative organization bringing together 40 big multinational companies around the world. According to GeSI's report, information and communication technology can make the world more sustainable. Luis Neves, chairman of GeSI, shared with us his opinion at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
Finding a New Way to Engage Customers & Drive Revenue

11|29|16   |     |   (0) comments


Mobile revenues are declining. Digicel, a player in the Caribbean telecommunications/entertainment space, has found a new way to engage customers and drive revenue. John Quinn, CTO of Digicel, shared with us its story at Ultra-broadband Forum (UBBF2016)
LRTV Custom TV
Do You Really Need Gigabit Infrastructure?

11|29|16   |     |   (0) comments


Altibox is the biggest fiber-to-the-home (FTTH) player and the largest provider of video and TV in Norway. They started out with zero customers in 2002. Now they have close to half a million households and companies attached to their FTTH business. Nils Arne, CEO of Altibox shared with us their story and insight on 5G at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
BTís Openreach Strategy & Its Updates in 2016

11|29|16   |     |   (0) comments


A lot of developments at Openreach this year in terms of strategy and planned investments. Peter Bell, CIO of Openreach BT, shared with us the updates of Openreach at Ultra-broadband Forum (UBBF2016).
Upcoming Live Events
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Cable Nodes Becoming a Choke Point
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 12/5/2016
Consolidated Snaps Up Fairpoint for $1.5B
Iain Morris, News Editor, 12/5/2016
Small Arctic ISP Caches Netflix in New Way
Mari Silbey, Senior Editor, Cable/Video, 12/7/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
A Mobile Safari Click Here
Literally.
Latest Comment
Live Digital Audio

Even when there's a strong pipeline of female talent in the comms industry, it tends to leak all the way to the top. McKinsey & Company says women experience pipeline leakage at three primary points: being unable to enter, being stuck in the middle or being locked out of the top. Each pipeline pain point presents its own challenges, but also opportunities to stop the leak. Wireless operator Sprint is making a conscious effort to improve its own pipeline from new recruits to the C-suite, and it wants the rest of the industry to do the same. In this Women in Comms radio show, WiC Board Member and Sprint Vice President of Enterprise Sales Nelly Pitocco will give us her take on the industry's pipeline challenges. Pitocco, who joined Sprint in May and has spent 20 years in the comms industry, will also offer solutions, share how Sprint is tackling the challenge within its own organization and take your questions live on air.