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ShareMumbai: Alcatel-Lucent Managed Solutions (ALMS) -- Reliance Communications' joint venture with US-based telecom equipment manufacturer Alcatel-Lucent -- fell short of its target revenue for the first year of operation, it is learnt.
ALMS executives chose to remain quiet on whether the JV was profitable in its first year of operations.
"We are on track in our revenue targets," Vivek Mohan, managing director, Alcatel-Lucent India, told DNA Money. However, Mohan would not throw any light on whether the JV made money in the first year.
ALMS had bagged a five-year contract initially worth $500 million, to manage RCom's network in 2008. RCom holds a 33% stake in ALMS. The growth of the contract size is imminent -- it is worth more than $750 million now, and further growth is expected.
However, actual realisation of revenue has been unsatisfactory.
The JV earned about 15% ($75 million) of the contract value in the first year, against a target of 20% ($100 million).
"The first year revenue is less than a fifth of the total contract. This is because we could complete the network operations and management of five circles for RCom," Andy Williams, president, services group, Alcatel-Lucent, said.
