"We are bringing in close to $250 million over a period of two years to gear up to meet the challenges arising out of telecom sector deregulation," said Mr Sam Elimelech, CTO and founder of CTI Net AG.

The company has signed an MoU with Richimen group in Hyderabad on Wednesday for setting up a 49:51 joint venture company. The new company will be formed by month-end.

The services provided by the company include Network Management Control & Billing (NMC) technology, setting up infrastructure facilities, develop, manufacture telecom switches, assembly units, land (earth) stations, he said.The Richimen group will bring in close to $20 million over a period of six months in the joint venture to meet the required capital expenditure while the Swiss company will bring in technology, G Vittal C&MD of Richimen group said.

The Swiss company will bring the balance in major chunk through its group companies and also will raise some amount from the Indian capital market, Mr Elimelech said.

The JV company proposed to sign an MoU with Videsh Sanchar Nigam Limited in January to sell 60 to 100 million additional traffic minutes per month from its global resources to enable VSNL to increase is traffic to over 300 million minutes per month, Mr Elimelech said.

CTI Net is operating a virtual network and provides access for all traffic types to backbones, carriers and service providers. The JV will bring in four different technologies: CTILinx, which provides a one-stop-shop for next generation telecom projects; YLinx, which offers mediating and translating telecom switching devices; Linxway, which ensures network management, control and billing and GTLinx provides a virtual telecom backbone, all under one umbrella.