Telecom equipment provider Kavveri Telecom is scouting for acquisitions in the in-building wireless solutions space.
In-building wireless solutions (IBS) refers to a telecom network and base station installed inside buildings to make sure mobile signals are not lost within buildings, particularly in areas like the basement and higher floors.
The company is working on its first acquisition in the segment with a US-based IBS products and services provider and is looking at more opportunity in the public safety space, Mr C. Shivakumar Reddy, Managing Director, said. It is now mandatory in the US for any building above 50,000 sq ft to have IBS installed, and Kavveri is eyeing this opportunity.
While the company has been present in the IBS space for a decade now, it is increasing focus given the opportunities in the Indian market for installing the solutions in malls, hotels, hospitals and commercial buildings.
About 10 per cent of Kavveri Telecom’s revenues come from the IBS business and this is expected to go up to about 25 per cent by 2014.
“We have installed the systems in about 125 buildings of about 40 million sq ft, and the addressable opportunity we currently have is 5,000 more buildings across India,” Mr Reddy said.
The Rs 334-crore company plans to raise about $20 million (roughly Rs 108 crore) through private equity investments, he added.
The company works on a Build-Operate-Lease business model where it acquires exclusive licence for a building, installs the solution, and charges telecom operators for using the solution.
The company has acquired its first such project in Mexico, Mr Reddy said.
The company also manufactures products required for the IBS systems.
They are currently made by its subsidiary Spotwave Wireless in Canada, but Kavveri will soon move the manufacturing to its plant in Bangalore, he said.