Nambiar's BPL Mobile to unveil ISP services in TN soon
bplmobile.com
(Friday, December 24, 1999)
Sridevi Srikanth in Chennai
BPL Mobile, the cellular operator in Tamil Nadu (except Chennai), is all set to launch ISP services in the state in 4-6 weeks from now. In mobile telephony, the company has slashed rates and is charging calls under its 'vivegam' scheme, an extremely competitive 77 paise for every 2 minutes - a flat rate applicable across the state.
Overall, BPL Cellular is "earnings positive" before interest, depreciation, tax and amortisation, says Deepak Varma chief operating officer, BPL Cellular Ltd.
BPL Cellular is also the mobile operator in Kerala and Maharashtra but the ISP will be launched in Tamil Nadu first.
The company has already established a microwave backbone for its mobile telephony services and will be merely optimising its usage by offering ISP services as well.
Its current microwave network covers 1250 km in the state and an additional 700-800 km will be added to this as the company increases reach and offers mobile telephony in smaller towns.
Still, in anticipation of the surge in Internet-related traffic in the future it is also preparing to lay an extensive optic fibre cable network in the state.
Talks are also on with other organisations like the southern railways, RITES and ONGC to make use of their existing fibre optic cable network, says Varma.
BPL Mobile's other main competitor in Tamil Nadu, AirCell owned by NRI businessman Sivasankaran, it may be recalled, is already into the ISP business with the launch of Dishnet.
Meanwhile, BPL Mobile has drawn up an ambitious expansion plan to cover in phases 41, 22, 35 and 120 towns in Tamil Nadu by March 2001. In terms of population covered, this works out to about 7.5 million.
So far, the company has invested Rs 650 crore ($151 mil) inclusive of Rs 270 crore licence fees and another Rs 250 crore investment will be needed to cover these new towns.
Between April and November 1999, Varma says the subscriber base has increased from 28,000 to 46,000, while the minutes used has surged from 130 minutes to 411 minutes per subscriber, per month.
Underlying this spurt in usage is an attractive scheme tailor made for the mass market it was targeting. Called Sangamam, the scheme offers an affordable price plan by charging 77 paise for two minutes and is targeted at the typical entrepreneur, merchant-trader professional in towns and cities in Tamil Nadu.
The strategy is to price usage in a manner that the affordability factor does not come into play in an average user's mind while using the service, he said. |
