Describing India as a 'strategic market,' French telecom major Alcatel, which is currently non-existent in the country's vibrant GSM-based network, has offered to make investment on behalf of operators and enter into revenue sharing arrangement.

"India is a strategic country for us to devise our strategy for the worldwide market. It is a very competitive market and all manufacturers want to go there," Olivier Picard, President, Alcatel (Indian subcontinent), said.

Asked whether Alcatel would enter into joint ventures with operators for investments in expansion of their GSM networks and deploying broadband networks, Picard said, "We may help operators putting in place the finances. Once they (operators) start making profits on these investment we will enter into revenue sharing arrangement."

On the quantum of investments to be made in India over next two to three years, Picard said, "If we are successful in GSM and broadband business with the revenue sharing model, then there will be lots of investment from us."

In the broadband segment, Alcatel is eyeing a huge market, especially that of the incumbent Bharat Sanchar Nigam Ltd which has an advantage due to its copper based network deployed all over the country.

Observing that GSM technology was here to stay, Picard said, "Along with this, broadband is likely to emerge as the next revolution in Indian telecom. In these two segments, we are looking at grabbing 25 per cent market share in the next three years and we feel that our investments would give us good returns."

Asked if the company would increase the number of employees in India, Picard said, "We have about 600 engineers now working in the software centres and soon the number will be increased to over 1,000."

There would also be some replacement. Headcount of those working in old technology would be reduced and they would be replaced by engineers for the new technology.

Alcatel has tied up with Indian telecom equipment maker ITI for entering the GSM market and has been awarded a major contract for deploying over one million line network for BSNL in the western region.

The company has also bid for supplying equipment for other regions in a BSNL's tender floated last month.

The 12.5 billion euro French conglomerate Alcatel is a leading equipment supplier in the world, operating in more than 130 countries. In India, the company has a presence since last 20 years. Alcatel was the first company to manufacture digital switching equipment for fixed-line telecom operations.