Telecom policy to impact Gemini Communication's arm

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Telecom policy to impact Gemini Communication's arm

Gemini Communication has been planning to raise funds for its 100% subsidiary company Pointred Telecom, said the company chief executive officer of energy and RFID, Pradhyumna T Venkat to CNBC-TV18 in an interview.

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Gemini Communication has been planning to raise funds for its 100% subsidiary company Pointred Telecom, said the company chief executive officer of energy and RFID, Pradhyumna T Venkat to CNBC-TV18 in an interview. "The fund raising plan is for the research and development (R&D) activities of the 4G space," he pointed out.

Talking about the new telecom policy, Venkat said that the draft would have an impact on Gemini Communication's 100% subsidiary company Pointred Telecom. "The government's end objective is to ensure that at least about 80% of the telecom networks are domestically manufactured in the next to eight to 10 years' time," he added.

Here is the edited transcript of his interview. Also watch the accompanying video.

Q: You have a couple of fund raising plans. How much are you looking to raise and for what?

A: We have been considering raising funds for the only Indian 4G equipment manufacturer Pointred Telecom. The fund raising plan is for the research and development (R&D) activities of the 4G space. The company offers products in the 4G space which is long term evolution (LTE).

Q: Weren't you considering an initial public offering (IPO) for Pointred Telecom? Have you shelved the plan completely? Are you looking at some private placement into it by the mother company?

A: We are not considering an IPO at this point of time. It has taken a back seat because of the market's volatile conditions. We are now considering other options to raise funds. Gemini Communication is the parent company and supports Pointred Telecom for its R&D activities and expansion of manufacturing.

Q: What is your view on the new telecom policy? Would it have a positive rub off on you and your company?

A: On the telecom services side, the new draft would have an impact on Pointred. As Pointred is the only Indian 4G equipment manufacturer, there would be a lot of thrust on the local equipment manufacturer.

Usually broadband wireless space and 4G is the cheap technology platform, because the government wants that space to touch at least about 175 to 200 million users in the next four to five years' time.

The government's end objective is to ensure that at least about 80% of the telecom networks are domestically manufactured in the next to eight to 10 years' time.