‘We expect a slow uptake of LTE small cell software’
What were the key developments in FY12 for Tata Elxsi?
FY12 turned out to be an exciting year for Tata Elxsi with strong performance across all dimensions. On a consolidated basis, the total income for the financial year grew 29% y-o-y to Rs 539 crore. Consolidated PBT grew by 73% over FY11.
Muring the financial year, the company has closed multiple deals for wireless broadband solutions including femtocells with leading tier-1 OEMs. We have also engaged with leading telecom product companies to support their 4G product development.
We have engaged on next generation Android smart phone development projects with some leading OEMs. In the automotive sector, we are seeing traction for sophisticated wireless connectivity for infotainment, telematics, and diagnostics.
What is the scope of LTE Femtocell market in India?
Though femtocells are gaining traction globally, business models are still being evolved for widespread deployment. The large ad- dressable market, high growth rates, and low penetration for the small cell software indicate significant headway for future growth. However we expect a slow uptake of LTE small cell software in India primarily due to delays in operator commitments/ commercial deployment of LTE.
However having said that, OEMs are investing significantly in LTE RFM, targeting these developed countries in near term. As a technology, protocol stack and service provider, we target OEMs and OMMs which are addressing the small cells market.
Our revenue from India will most likely be indirect through the OEMs with whom we are engaged. In India, a few service providers are planning to deploy femtocells driven by 3G expansion plans and commercial deployment of 4G LTE. We would like to target the OEMs which will be supporting India specific requirements though there aren’t many. Tata Elxsi is also working with leading silicon vendors to implement our LTE femtocell software on upcoming system-on-chip platforms (SoCs) that will help in addressing aggressive price points demanded by this industry.
Has Tata Elxsi considered to invest in broadband wireless solutions using TV white space and unlicensed spectrum?
TV white space has interesting implications for backhaul. We are working with some companies in exploring this further. Tata Elxsi has already built technology and systems for unlicensed spectrum. We have worked with a company in the US to develop backhaul solutions based on WiMax for smart grid that operates in the unlicensed spectrum band. This allows utilities to aggregate data from sensors, smart meters, etc, in both transmission and distribution aspects of its services. This has been successfully deployed with 2 utilities and is being trialled with many others.