Stock Review: Tulip Telecom

Tulip Telecom provides wireless enterprise connectivity, considered a promising area in terms of revenue visibility. The company aims to participate in government connectivity projects, where the potential is high. It also provides value-added services like data transfer and remote access. It has laid down a network of 6,000 km of fibre lines, operating a network across 50 cities. The fibre business contributed about 25 per cent to revenues in 2009-10, which could go to almost 70 per cent by 2012-13, leading to margin improvement.