Comverse, a division of Comverse Technology (Nasdaq:CMVT)
, has signed deals with two Indian companies worth an aggregate $17 million, according to the Times of India.
Both deals, with Reliance and with Bharat Sanchar Nigam Ltd, are to supply value added services.
Reliance, a private company, operates a local network. It started out as a petrochemicals company and refinery that expanded into telecommunications when the Indian market opened to competition. Comverse will be providing it with prepaid solutions and voicemail for its mobile wireless in local loop network, at a total transaction value of around $8 million, the Times reports.
BSNL, which lost its monopoly over the Indian government's long-distance calls but which remains a publicly traded government company, is buying Comverse's unified messaging solutions. The contract is estimated to be worth $9 million.
Comverse said that it will only divulge information to the public in an orderly fashion. But the deals suit Comverse's strategy of offering immediate communications solutions, such as voice- and text-chats, and instant conferencing, for cellular operators, in order to offset the expected drop in revenues.
Although Comverse refuses to confirm the deals, sources at the company told the Times that the deals should boost the company's income from India over $20 million in 2002, and $30 million in 2003-2004. Sales to India totaled $7 million in 2001.
Comverse Technology is expecting third-quarter revenues of $157 million to $173 million, compared with $181.2 million in the second quarter.