State-run telecom major BSNL is planning to start a joint venture company with private firms to manufacture customer equipment for its broadband service.
Bharat Sanchar Nigam Ltd proposes to set up a Joint Venture with an Original Equipment Manufacturer (OEM) firm for manufacture of the latest generation ADSL 2+ CPEs or customer premises equipment like modems to be used on Bharat Sanchar Nigam Limited's Broadband service, at its Telecom Factory at Kolkata, a company official said today.
It is the largest Telecom Service Provider in India having countrywide presence with over 73 million subscribers.
Telecom Factories are the in-house production units of BSNL and are engaged in the production of variety of Telecom equipments. It has a broadband subscriber base of over 1.5 million subscribers.
The proposed JV will Design and Develop a range of models of ADSL2+ CPEs exclusively for BSNL as per TEC/BSNL specifications taking into consideration the market conditions prevailing in India.
The OEM would be responsible for the transfer of technology for setting up facilities for design, manufacture, assembly and testing of about 1 Million ADSL2+ CPEs per annum. The ADSL2+ CPEs would be launched by BSNL in the market under its own brand name.
The JV partner apart from investing in the production line will also be responsible for arranging of funds to meet the working capital of JV Company at competitive market rate.
After meeting the requirement of the BSNL, the JV Company would be free to sell these items in the open market or export.
Source: EconomicTimes
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