Satyam Infoway plans to set up Rs 1-billion internet gateway
M Anand & Sridevi Srikanth in Chennai
Satyam Infoway, India's first Internet service provider, is planning to set up its own international gateway for Internet access. The gateway is estimated to cost about Rs 100 crore (Rs 1 billion).
"We are very clear that Satyam Infoway has to set up its own gateway. We are hoping to have the gateway ready in the next four to six months time," R Ramaraj, Satyam Infoway?s managing director told Business Standard.
"The department of telecommunications (DoT) is expected to announce the guidelines for setting up private gateways this month. We will file for permission to set up our own gateway as soon as the guidelines are announced," Ramaraj said.
He said raising the required Rs 100 crore for the gateway was not an issue.
"A lot of venture capitalists have shown keen interest for a private placement of shares. Satyam Infoway?s debt is almost zero and we could comfortably leverage this to raise the required funds," he said.
Satyam Infoway is also in discussions with other members of the Internet Service Providers Association of India (ISPAI), to jointly set up a gateway.
"Talks among ISPAI members for joining hands to set up a gateway are on. However, Satyam has decided to set up its own gateway as well," Ramaraj, who is also president of ISPAI, said.
The proposed gateway will substantially increase Satyam Infoway's capacity to the Internet and will also reduce Satyam Infoway?s dependence on the Videsh Sanchar Nigam Ltd (VSNL) for bandwidth for Internet access.
Meanwhile, Satyam Infoway has initiated a bandwidth expansion exercise to improve the speed of access to its... subscribers. The company, which has eight MB bandwidth, is planning to expand to 16 MB by March 1999.
"We have 2 MB bandwidth from VSNL in Chennai, Delhi, Mumbai and Bangalore. Besides expanding these in cities like Chennai, we will be adding bandwidth in Hyderabad," Ramaraj said.
Satyam Infoway is also trying to establish a direct pipe into the Internet and is talking to a few international players.
However, only half the circuit can be established with the overseas company. The other half has to be sourced from VSNL. (dated Feb.11,99 -BS) |
