iZone - Satyam Infoway to roll out 1,000 cyber cafes
Internet service provider Satyam Infoway Ltd plans to set up over 1,000 cyber cafes in India under the brand name 'iZone'.
Satyam Infoway managing director R Ramraj said, "The company will have franchise agreements to set up cyber cafes in the country".
Apart from earning money through the franchise fees, Satyam also stands to gain, as the cyber cafes will utilize its Net access service. Besides, it portal, Indiaworld.com will be the 'default home page'-the first site that visitors will see after accessing the Net-giving Satyam Infoway much-needed eyeballs.
The cafes will be launched in phases. Over 1,000 iZones will be set up in the metros and A-class cities. Later, the outlets will be opened in B-class cities, to be followed by hill stations. The company has already finalized a couple of sites in and around Delhi. One site has been identified in Vasant Kunj area and the deal is in the final stages. A similar deal has been signed for Noida, according to a company source. Another 45 sites have been identified in different cities, but a decision on them is still awaited.
Declining to comment on the company's investment plan, Ramraj said, "The Company?s investment in this venture is insignificant as most of the outlets will be franchised."
According to the company source, Satyam has already appointed an international real estate consultant for identifying sites and managing the project.
Recently, the holding company, Satyam computer Services has appointed international investment bankers Salomon Smith Barney to offload around 3 per cent equity in Satyam Infoway to prospective investors. Satyam Computer holds around 57 per cent in Satyam Infoway.
The company is also planning to raise around Rs 780 crore for retiring its debts of Rs 330 crore, a plan which will free the company of all debt.
Last year, Satyam Infoway had acquired IndiaWorld, a Mumbai-based portal company, in a two-stage deal valued at $115 million (Rs 499 crore) for content generation for its portal business.
According to sources, the India world portal will be the content provider for the "iZone."
Satyam also has plans for starting its own payment gateway for facilitating on-line e-commerce transactions soon.
The payment gateway will allow customers with Indian credit cards and bank accounts to pay for their transactions on the Net with the funds getting transferred in real time.
Source : MI
Mar 23, 2000 |
