Huawei, the third largest telecommunications solutions provider in India, is close to signing a managed services deal with Videocon Telecommunication Ltd (earlier Datacom). However, the size of the deal could not be ascertained. A managed services provider deals with operations and maintenance of a telecom service provider’s network. The company has already signed such contracts with entrants like Uninor, Loop Mobile, Etisalat and Shyam Sistema Teleservices among others. Videocon is in the process of rolling out the GSM network for Datacom in 13 of the total 21 circles.
Huawei derived almost 20% of its revenues from managed services in 2009. ?We are looking at managed services in a big way. Till 2008, its contribution to our revenues was insignificant. However, in 2009, this business gained traction and we signed managed services contracts with all the incumbents,? said Lester Herbert, executive director, marketing and strategy, Huawei India. Managed services are likely to contribute around 30% of its total revenues in India this year.
