Indian Private ISP Players Plan Global Gateways
By Uday Lal Pai
InternetNews India Correspondent
[August 10, 1999--MUMBAI] Private Internet Service Providers (ISPs) have said that they are setting up their own private gateways soon to do away with the dependence on Videsh Sanchar Nigam Limited (VSNL) for back-end connectivity to internet.
The move follows the government's recent decision to let private ISPs to set up their own international gateways. The DoT had announced guidelines for the private ISPs to apply for international gateways to provide Internet access directly or through other ISPs. Currently, VSNL has the monopoly in operating international gateways in the country.
Satyam Infoway said it would put up 10 gateways. It has finished with the groundwork for setting up international gateways. The company is planning to float tenders to source equipment for its gateways shortly. "So far, we were dependent on VSNL. Now, with our own set-up, we can offer a better service," said R.Ramraj, managing director, Satyam Infoway.
According to sources at Satyam, the company has initiated talks with Loral and other satellite service providers to either purchase or lease out transponder space to link up its gateway network.
The cost of the project would be around $ 24 million, which Satyam will be raising through its forthcoming American Depository Receipts (ADR) issue. Satyam Infoway has already filed its ADR application.
Another option in front of Satyam is to install a cable-based network. This would mean installing a single gateway in Mumbai because the cable has a solitary landing point here and connects to a Trans-Atlantic cable which provides a direct connectivity to the US and Europe.
This option would mean a lower capital expenditure, but would involve high revenue expenditure, as Satyam would have to shop around for a lot more leased lines to offer the gateway benefits across all its centres.
On the other hand, Bharti BT Internet Private Limited is opting for setting up two international gateways, which will enhance its Internet services in Delhi and Bangalore. According to N. Arjun, chief executive officer, Bharti BT his company's objective was to start offering Internet services through its own international gateways by March 1, 2000.
He said that the total cost of the project would be about $ 12 million. "We still have to take a decision on the mode of financing." Arjun said. "What we want is to have a better control on the backbone in order to provide better service to the customers," he added.
Like Satyam, BhartiBT, too, is combating with similar options for gateways. For its satellite connectivity, the company is planning to land its satellite signal somewhere in Europe to be carried to the US through an Trans-Atlantic cable.
The private ISPs are still awaiting the clear-cut modalities with regard to security clearances and investment norms. However, the Department of Telecommunications (DoT) is yet to come out with final guidelines for them.
According to sources, the delay is due to the furious lobbying by VSNL (with its over 80 Mbps bandwidth capacity for the operators) against such a provision, which is insisting that international leased circuits to the Internet should be routed through it.
BPL Net also has evinced interest in installing a gateway. |
