Kavveri Telecom signs deal to provide in building solutions

Telecom equipment-maker Kavveri Telecom Products Ltd (Kavveri Telecom) has signed a 10-year contract with an Indian GSM operator to provide in-building wireless solutions.
   
The agreement, signed by its subsidiary Kavveri Telecom Infrastructure Ltd, would provide a substantial long-term revenue source for the unit.

Though neither the name nor the deal size were disclosed, Kavveri Telecom shares rose to over 8 per cent following the news of the signing of the 10-year order.
   
''Given the high costs of setting up towers and the loss of signals within enclosed areas and to provide capacity and coverage enhancements within large buildings, in-building wireless solutions is the way forward for the operators. As pioneers and leader in this field we aim to maximise our reach,''  Kavveri Telecom Managing Director Shivakumar Reddy said.
   
Kavveri Telecom is a manufacturer of radio frequency products and antennas in India. In-building solutions provide mobile signal indoors, where more than half of all mobile traffic is generated, enabling both cellular and broadband access.
   
The company's present customers include all leading operators and original equipment manufacturers like Ericcson, Alcatel Lucent, Nokia Siemens Networks, Reliance Communication, Bharti Airtel, Vodafone-Essar, Idea Cellular, Aircel and Bharat Sanchar Nigam Ltd among others.
   
Earlier in May, Kavveri Telecom acquired a radio frequency firm in Europe, even though neither the name nor the value of the deal size was disclosed.
   
The company had earlier acquired four different radio frequency products and antennae manufacturing companies in the past four years. These were Tiltek Antennae Inc, DCI Digital Communications, Spotwave Wireless Ltd and Trackcom Systems International.
   
In June, Kavveri Telecom received board approval to raise additional funds by way of qualified institutional placement, foreign currency convertible bonds, American depositary receipts, global depositary receipts or through any other mode of securities.
   
However, the company did not divulge the amount of funds it intends to raise.