OnMobile expects to launch ops with Telefonica in Q4FY10

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OnMobile expects to launch ops with Telefonica in Q4FY10

In an interview with CNBC-TV18, Arvind Rao Chief Executive Officer and Managing Director of OnMobile, spoke about his reading of the market and his outlook.

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In an interview with CNBC-TV18, Arvind Rao Chief Executive Officer and Managing Director of OnMobile , spoke about his reading of the market and his outlook.

Below is a verbatim transcript of the interview. Also watch the video.

Q: Tell us a bit about your operations - when do they start and when does the revenue start to kick in for Telefonica?

A: Revenues will start in the Q1 of next fiscal year and good news is that we are completely on track. It is a very large project - the largest project implemented in this company and we have been working hard at it. We have a large team in Latin America and backed up here in India and everything is going on track.

Q: The market expecting a Q4 FY10 launch. Are you on track to maintain that?

A: We are going to go live somewhere between April to June with the first operator in Latin America and then thereafter every month we will be going live with one operator for the next 12-months.

Q: You are also collaborating with Vodafone in terms of geographies like Romania and South Africa what sort of revenues are you seeing from those geographies?

A: They have picked up extremely well today and in percentage terms, they are very small obviously because they are very large operators. But for the first 3-6 months the revenues take time to pick up but everything is on track.

We are very happy with that and the next set of Vodafone operators, which will go live in 2010, are also on track for deployment.

Q: Your performance in next few quarters because your performance in Q2 wasn't impressive, lot of investments coming in from Telefonica as well - what kind of performance can we expect from you in the next quarter?

A: We really don't look at this business on a quarterly basis because these are very large operators and each of our contract is about 5-7 years and they are exponential revenue contracts, which means it keeps going up dramatically. And to take one of these contracts live it takes almost 6-9 months.

So we don't look at it on a quarter to quarter basis. We are looking to grab real estate because the overall industry and market is exploding and we are seeing tremendous customer demand all over. We are just buying real estate in terms of customer contracts.

Q: Any particular geography that you may have identified because you are in negotiations with several other geographies with Vodafone?

A: We are in discussion with them all the way from New Zealand to the United States. It is all across the world. We are in advance discussions with almost 8-10 operators.