XL Telecom to Assemble CDMA Handsets for Reliance

by Neelu Lekhi    Jan 10, 2007

XL Telecom Limited is in an expansion mood. While it is piloting CDMA- based fixed wireless phones with Reliance Infocomm, it is in talks with Airtel to provide GSM components.

Highly placed sources at Reliance Wireless who confirmed the development said that the purchase is a part of the company’s provisioning strategy. Reliance integrates its technology with LG, Samsumg, UTStarcomm among other branded phones. It is the company’s strategy to provide a variety to its customers.

The sources informed that the procurement department of the company identified ‘one more option’ in XL Telecom, in this case.

They added that the phones should be network and user ready and should link with the company’s call and service centers.

Vasudevarao K., executive director, XL Telecom, said, “We are conducting pilots on 25,000 CDMA phones for Reliance. We had bagged the order in first week of December 2006. Valued at Rs 5.7 crore, the order is to be completed by March end.”

At present, the company is awaiting shipment of the components, that will be assembled at its Hyderabad unit. Its US partner Axestel has already dispatched the components. “We can assemble 10,000 equipment per day. Once the consignment lands here, we would be able to assemble the equipment in about three days,” he added.

The company also plans to foray in the GSM segment. It is in talks with Airtel for a multi million rupee contract order. The dotted line, however has not been signed so far. Vasudevarao informed that Axestel will provide the GSM technology for all projects in India.