Bangalore: Bangalore-based telecom software product company Subex Systems today (Dec 1, 2003) launched its operations in China, where it's targeting a 15 per cent market share in the space it's operating in two years, contributing $ eight million to its revenues.

The company has set up a sales and support office in Beijing and has entered into a partnership with BOCO Inter-Telecom, its President and CEO, Subash Menon, told a news conference in Bangalore.

He said BOCO is one of China's leading system integrators, has revenues of over $ 70 million and extensive customer base in China Mobile and China Unicom, which are two of the four leading telecom players in that country.

Explaining the rationale behind the new initiative, Menon said for his company China is a "virgin market", since in the revenue maximisation and fraud management products space, its core area, there are only a few local players, and global ones are just entering there.

Market size for such products has been estimated at $ 50 million in China, where revenue loss of telecom companies because of fraud and technical errors is put at $ six billion annually, he said.

Menon said the Beijing office currently has three employees, all Chinese nationals, adding that the company is on the look out for more local partners like BOCO.

Subex's investors include Intel Capital and Toronto Dominion Bank. Promoters' holding in the company is in excess of 43 per cent. The company has 39 customers across 16 countries in four continents.

Menon said the company has given a guidance for revenue of Rs 80 crore and a net profit of Rs 18 crore for 2003-04. The company has a debt component of Rs 14 crore, he said in response to a question.

PTI