ZeeTele casts its 'NEXT Net'-Plans foray into ISP,portal business via E-Connect
zeetelevision.com
zeetelevision.com
MUMBAI, Nov. 17 (bl)
ZEE Telefilms Ltd (ZTL) plans to invest Rs. 400 crores over the next three years to develop its new ISP and portal business, called 'ZeeNEXT'.
The Internet foray is being managed by E-Connect India Ltd, a 100 per cent subsidiary of ZTL. Access would be possible through conventional telephone line, television cable or the planned direct-to-home (DTH) broadcast format. Both PCs and televisions can be hooked up to the system, operating for some time now as a 200-user-strong pilot project in Bangalore.
What would make Zee's service stand out is its high speed which reduces download time, Mr. Sunil Jasuja, President and COO, E-Connect, said. That speed would, however, vary with the type of delivery system opted for by the subscriber, it being quickest by DTH and slowest on telephone. Tariff would vary with the delivery format chosen.
Zee, which also owns Siticable, has plans to upgrade physical links with fibre optic cables. The company is open to offering its Internet services to other cable companies.
According to Mr. S.S. Iyer, Deputy CEO (Entertainment), Zee, Siticable is currently present in 41 cities with affiliates in another 40-45 locations. Siticable services over five million homes nationwide. ZeeNext would be accessible initially from Mumbai, Delhi and Bangalore, where 40 per cent of the country's Internet subscribers are based.
Other metros would be covered by third quarter 2000 and mini-metros by the last quarter same year.
To ensure adequate bandwidth and efficient operation, Zee would commission over the next 4-6 months its own set of international gateways. "We have not decided on the number of gateways," Mr. Dinesh Dhir, Senior Vice-President (ISP), Zee, said adding there were no plans for server farms as E-Connect saw its business as purely ISP and portal driven.
Key to Zee's Internet services taking off in a big way would be the cost of Web linkage through television cable, for which the price of cable modems must come down from the current level of Rs. 15,000-20,000 to a price comparable with that of telephone modems. In fact, when Zee kicks off ZeeNEXT in March next, access would be initially via telephone.
But Mr. Dhir says a full cable TV conversion package is possible for Rs. 8,000 or so, leaving just service charge as recurring expense. While the Bangalore pilot project features a service charge of Rs. 2,000 per month, officials insisted it, by no means, indicated the final commercial tariff.
The Internet business, which foresees break-even in three years, has projected a 25 per cent market share by the fifth year of operation. Total Indian Internet subscribers in ZeeNEXT's first year is pegged at 6,00,000, growing to 40,00,000 by the fifth year. Alongside, Zee sees itself growing from 30,000 to one million subscribers. From the second year, estimates include users surfing with cable modems.
Capital expenditure is Rs. 68.2 crores and Rs. 158 crores for the first and fifth years respectively. Corresponding revenue figures projected were Rs. 19.8 crores and Rs. 1,384.60 crores.
Mr. Iyer said the company would be open to strategic tie-ups for providing content. Such tie-ups need not manifest in equity stakes, he said adding on the question of divestment that Zee had traditionally worked with own funds and borrowals.
The portal content ranges from e-mail to live news, auctions, broking, shopping and radio. Its distinctive features were described as entertainment coverage, customisation, Webcasting and online e-commerce. |
