SoftNet Seeks Net-via-cable Route in India
By Uday Lal Pai
India Correspondent, asia.internet.com
[December 15, 1999--MUMBAI] US-based SoftNet Systems, a provider of Internet services over cable networks, plans to set up partnerships with cable TV operators in India.
The company is also looking to set up a base in India in the first quarter of 2000.
SoftNet has initiated talks with Reliance Group and Siticable to set up joint ventures in India to distribute Internet services via cable using a VSAT backbone.
According to SoftNet chairman Larry B Brilliant, the company seeks to form partnerships with cable operators across India to help them deliver Internet over cable TV. Initially, SoftNet plans several pilot projects in specific cities.
Brilliant said that SoftNet partners with cable operators to convert existing systems into high speed Internet networks, and has over 2.5 million Internet subscribers worldwide via cable. The amount of investment in the Indian market would depend on market response, he added.
Brilliant said India has the potential to have around 50 million cable homes with Internet access over the next five years.
Sumi Augenstein, director of business development for SoftNet, said that the company would target the bigger players first as they had the necessary infrastructure and subscriber base. "For India, economic viability indicates that networks have a minimum of 50,000 subscribers", she added.
Brilliant said that the key obstacles faced in India were underpowered one-way cable networks and typical small cable operators with just 200-500 subscribers each. "Excessive government regulations and the lack of legal clarity in this industry also needs to be resolved," he added.
The demand for broadband Internet access, the vast reservoir of talent and the low wages made India a promising market for SoftNet's services, Brilliant remarked |
