Cisco sees $100m business in India from Net routers

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Cisco Systems expects to gain business worth $100 million in Indian market over the next three years, from marketing its next generation Internet routers.

The company is banking upon the opening up of international long-distance services for a substantial rise in its revenues from India. However, it presently has trained its eyes on large players like Bharti, Reliance and DSLDishnet, which are expanding the bandwidth availability.

Cisco vice-president of new business ventures Jayshree Ullal said: “In India, the market is just beginning to open up. With continued deregulation, we expect the market to boom in the next 12 to 24 months. International long distance, metro broadband networks, and Internet data centres are all expected to fuel the demand for the next generation Internet routers.”

Cisco is reported to already be working on a voice over Internet protocol (VOIP) pilot project with Bharat Sanchar Nigam Ltd.

Cisco head for sales Naresh Wadhawa said that though the present international bandwidth in India is limited to one giga bits per second (Gbps), it is only a matter of time before the country moves up to tera-bits.

“Since the efforts by corporates to bring international bandwidth have already taken off, an equal emphasis is expected to be laid on beefing up the domestic infrastructure,” Wadhawa said. “Once the bandwidth is available, applications like eCommerce, video broadcast and others will follow. In fact, later international sites may chose to host their servers here for the cost advantage. That’s where our market is.”

As for the internal infrastructure, the existing internal bandwidth capacity, which is hovering around 5 and 5.5 Gbps, is also expected in increase incrementally with greater penetration.

Globally, Cisco estimates the market for its new high-end routers, which provide solutions for carriers who want to deploy delay-sensitive applications such as voice and multimedia in IP networks, to touch $6 to $8 billion in 2002.

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