Megasoft in $25-million deal with Xero Mobile

Megasoft Limited, a global provider of specialised solutions to the telecom sector, has entered into a three-year exclusive contract with the Los Angeles-based Xero Mobile.

As per the contract, worth about $25 million, Megasoft will provide its XIUS VOISE (virtual operator integrated service engine) platform to Xero for launching the latter's Mobile Virtual Network Operator (MVNO) services in the US.

"This is one of the largest deals for Indian products and technology," Megasoft managing director and chief executive officer G V Kumar told mediapersons here on Tuesday.

He said that the contract, extendable beyond three years, envisaged provision of not only VOISE platform for the Xero's mobile launch but also other professional services as the project moved forward.

According to Kumar, Xero, a mobile phones and advertising company, will be commencing MVNO services this year with a focus on students in 350 targeted US markets.

The US company has targeted to start with the provision of one million high specification handsets along with various services and end the first year of its operations with 5 million subscriptions. The company is planning to expand its operations globally, especially to Western Europe and Canada.

Kumar said that Xero would provide handsets without contract and at notably competitive prices. In return, students would agree to accept a small number of video advertisements on their handsets every day. Each advertisement would provide free mobile airtime to the students.