Shyam Networks manufactures telecommunications equipment and provides solutions pertaining to network security, surveillance and strategic communications.
In an interview with tele.net.in, Nafis Kazim, chief operating officer, Shyam Networks discusses the challenges faced by the company in the Indian market and its plans to expand its business to international markets.
Excerpts?
What has been the demand for IP backhaul radios in the country?
The overall uptake of IP backhaul radios or point-to-point and point-to-multipoint radios in the 2.4 GHz and 5.8 Ghz bands has been very low for the last two years. The demand for equipment, both from operators and internet service providers (ISPs) has been below expectations. ISPs are our key customers but unfortunately, space crunch and lack of investment has impacted demand for such equipment. This, in turn has dampened the demand for IP backhaul radios.
Other players like Bharat Sanchar Nigam Limited did purchase equipment from us last year, but they are yet to float a tender for this financial year.
What factors can be attributed to the low demand for IP backhaul radios from operators and ISPs?
Operators are shying away from placing orders owing to the regulatory uncertainty prevailing in the telecom industry. The cancellation of 2G licences by the Supreme Court early this year, coupled with doubts over the forthcoming spectrum auction has deterred service providers from making investments in infrastructure.
Also, major government projects have not taken off. So, the overall objective of connecting schools and public services has not been achieved. This has also contributed to the muted demand for infrastructure required to support such projects. However, the uncertainty in the sector is expected to clear up once the forthcoming auction has been concluded. Thereafter, we are hopeful that the telecom industry will attract more investment from operators.
What products is the company planning to launch in the market?
By end-October, the company is planning to expand its product portfolio. Our products will support bandwidth below 25 Mbps, in tune with the industry?s requirement. We had expected the bandwidth requirements of the country to increase exponentially, which, unfortunately, has not taken place. Therefore, cost optimisation becomes a priority and, to cater to this requirement, we have launched a series of products that cater to lower bandwidth requirements.
What are the company plans in India in the next year?
Keeping in mind that telecom companies have stopped investing in technologies and networks, we have shifted our focus back to international markets. Given the fact that the investments by carriers in the Indian market are low, the company has shifted its focus to international markets, in particular Africa and the Middle East. In Africa, we are planning to venture into countries like Ghana, Nigeria, Johannesburg and Kenya. The company is also keen on making inroads in South East Asia and SAARC countries. In South East Asia, we are keen on foraying into Vietnam and are also looking at exploring Latin America, which is an emerging market.
Globally, countries with a population less than 10 million could provide us with lucrative business opportunities.
What are the challenges involved in tapping international business markets?
Our debut in international markets will entail high investment costs for us. Further, we will have to tackle issues related to language and import barriers. Each country also has its own set of procedures and approvals which needs to be addressed on an individual basis.
However, we have chosen countries which present us with exciting business and growth opportunities. In the past, we have had a few success stories. For example, we bagged an order from Nigeria-based internet service provider Direct On PC Limited. A few more purchase orders seems to be in the pipeline.
What technology trends do you foresee in the telecom industry?
Wi-fi is going to emerge as the most preferred technology for delivering broadband to end-users. Broadband will primarily happen through wireless. Going forward, more than 65 per cent of broadband connectivity will be based on wireless.
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