With a strong focus on increasing broadband penetration and a growing demand for wireless broadband technologies like Wi-Fi and Wi-Max, the Indian market offers huge growth potential for Chennai-based network solution provider Microsense.
Set up in 1982, the company has tended to maintain a low profile. However, over the past four years, it has seized the opportunity offered by wireless broadband technologies and set up over 700 hotspots across the country.
As a local provider of wide area networks (WANs), Wi-Fi applications and integrated network infrastructure, Microsense has developed a high degree of expertise, enabling it to provide solutions for exacting corporate requirements.
“We also undertake end-to-end turnkey projects involving design, connectivity, equipment supply and deployment, and support services,” says N.V. Krishna, director, Microsense. Through its six offices, Microsense has implemented solutions for over 1,000 customers across the business spectrum.
The company has built networks in partnership with service providers to gain access to their subscriber base. For instance, in April 2005, it was awarded a contract to set up around 500 hotspots by both Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) in the face of stiff competition from Sterlite, Motorola and HCL.
While BSNL’s contract was for 300 hotspots in 15 cities, MTNL’s was for 200 hotspots in Mumbai and Delhi. “Our software platform for operating support systems built in-house was a key differentiator,” says Krishna.
Microsense has also set up hotspots for the Bharti Group in Mumbai, Delhi and Bangalore. Microsense operates these hotspots on a revenue-share basis. Bharti pays for the hardware while Microsense uses its own software and provides maintenance. Most of these hotspots have been set up in coffee bars.
Having networked over 100 hotel properties across the country via Wi-Fi technology, Microsense is the country’s largest WiFi service provider in the hospitality sector today. Globally, it has ongoing projects in Sri Lanka, the Maldives and Ireland.
Given its strong presence in the hospitality sector, the company is now targeting segments such as airports, the enterprise space, government establishments, the education sector and residential users. It expects its network to expand rapidly over the next six months.
“We have recently won the contract for networking the National Centre for Biological Science, one of the country’s top research institutes. We are also in talks with builders to Wi-Fi-enable apartment complexes,” says Krishna.
While Microsense’s initial focus will be on cities like Hyderabad and Bangalore ?? besides the four metros ?? the company has ambitious plans to cover the entire country with Wi-Fi hotspots.
Meanwhile, other Wi-Fi players are also targeting the same market segment ?? hotels, restaurants, coffee bars, airports, shopping malls and exhibition halls.Amongst these, hotels are particularly attractive as it has become a necessity for them to provide broadband access.
Experts say that the business model of standalone service providers like Dishnet Wireless and Microsense is likely to be affected once telecom companies such as MTNL and BSNL enter the fray.
But Krishna disagrees.”We are clearly the leaders in the hospitality sector. Telecom companies don’t pose a threat to us. Voice traffic accounts for over 95 per cent of the revenue of telecom operators with data playing a very small role, and this has been the trend not only in India but also internationally. The share of WiFi in the total revenue will be too negligible for them to spend time. More often than not the telecom operators will rely on outsourcing. We have been in the broadband internet access business for many years and know the nuances of the trade.Finally, there is always place for focused players in the market,” argues Krishna.
Microsense is also concentrating on providing city-wide broadband wireless access. The “Unwire Pune” project, for example, has been a feather in its cap.
The Pune Municipal Corporation, in association with global chip-maker Intel Corporation and Microsense, has recently launched the first phase of this project which is likely to be completed over the next two years. This project is significant for using both Wi-Fi and Wi-Max technologies to make the city wireless.
While Microsense will implement the network and offer broadband wireless services, Intel will be the chief technology and programme management consultant for the project.
“Microsense again has the first-mover advantage in this case. Unlike its competitors, the company has an exclusive 10-year contract with the Pune administration to use municipal infrastructure like lampposts and buildings which are necessary to deploy a Wi-Fi cloud over the city,” explains Krishna.
The company has also been shortlisted by the Karnataka government as its top vendor for the “Unwire Bangalore” initiative. A pilot project for providing wireless broadband access has already been conducted at Vikasa Soudha, a multi-storeyed building complex in central Bangalore.
Microsense has a turnover of Rs 200 million and is targeting a turnover of Rs 1 billion over the next three years. It plans to invest approximately Rs 1 billion in forthcoming projects.
In the pipeline are unwiring projects in more cities such as Jaipur. The company also intends to scale up Wi-Fi networking and provide services both independently and in partnership with other telecom companies. As it rides the Wi-Fi wave, the company is looking into the far horizon and discerning tremendous future demand for Wi-Max and WiFi technologies in India.
