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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (3764)	2/19/1999 10:03:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Satyam 'Sam' Pitroda,WorldTel guns for Internet business in India. Signs deals with Tamil Nadu and Karnataka Governments, to gun for more Satyam 'Sam' Pitroda guns for Internet business EC News Network Bangalore Telecom major WorldTel is exploring new opportunities in the field of Internet. The company recently signed Memoranda of Understandings (MoUs) with the governments of Karnataka and Tamil Nadu. The agreement is to explore a planned introduction of Internet services throughout the two states. This achieved, the company will evaluate the scope and nature of its activities and proposed investment in the states. WorldTel plans to invest around $100 million in the Internet service project in Karnataka. "We will be putting in around $100 million and will also look forward to a token contribution from the Government of Karnataka in the project," said Sam Pitroda, Chairman and CEO, WorldTel. The company has similar plans with the Tamil Nadu government. "The company would go about setting its operation within the existing Indian legal framework", he added. WorldTel will lay a pipe to connect all the four southern states and share and channelize information. The company is working out a tariff rate for the same and does not propose to offer differential tariff rates to urban and rural areas. "Internet service is a long term program and it would be wrong to be driven by short-term profit motives," said Pitroda. "The company is looking at generating business based on volumes and is commited to infrastructure development," he added. WorldTel is also in the process of approaching the states of Andhra Pradesh, Gujarat and Kerala for similar projects. As per the Karnataka Government's stated policy WorldTel's proposal would be considered at par with other players who put in similar proposals. "The state Government will offer all necessary assistance if it finds the project conducive to the state's requirement," said Sanjay Dasgupta, Secretary, Information Technology, Government of Karnataka. The Tamil Nadu Government, may pick up either a 11 percent or a 26 percent stake in the project. Overall, the project will have a 50:50 debt, equity ratio.