Satyam too slashes internet rates

MUMBAI, APR 21: Following the overall drop in internet rates last month, premium player Satyam Infoway has also decided to slash its pric...

MUMBAI, APR 21: Following the overall drop in internet rates last month, premium player Satyam Infoway has also decided to slash its prices by 15 per cent to 10 per cent. The new prices have already taken effect from April 15, a senior Satyam official told The Indian Express.

However, its prices will still be at a premium to that of its competitors, Videsh Sanchar Nigam Limited (VSNL) and Mahanagar Telephone Nigam Limited. On renewals, the internet service provider (ISP) has effected a massive 33 per cent reduction on the 100-hour account bringing it nearly on par with that of VSNL at Rs 2,600.

The drop has been prompted by a number of factors including lower bandwidth costs, the official said. The maximum 15 per cent drop will be on the popular Discover 100 package, bringing it down from Rs 3,900 to Rs 3,300. On Discover 500 the drop will be around 10 per cent to Rs 8,900, while renewals will be at Rs 8,400.

Story continues below this ad

The price of the 25-hour account will remain unchanged at Rs 990. "The production costof the CD (compact disc) and royalty make it impossible for further reduction," said the official. A new 250-hour slab has also been introduced at Rs 6,000 with a renewal rate of Rs 5,600. Nearly all the players in the market have a 250-hour package, but Satyam had chosen to first introduce a 25-hour package and a 500-hour package (Venture 500 priced at Rs 17,000; renewal at Rs 16,500) tailored for corporates with facility for five users to surf the net.

In the light of the new rates, Satyam Infoway has also revised it all-India subscriber target to 10,000 a month, sources said. The first exercise had pegged subscriber growth at 13,000 in four months. By March 2000, the ISP plans to offer internet services in 40 cities up from the existing 12.

Sources revealed, the company was also likely to induct K V Kamath of ICICI on its board of directors. As part of its efforts to make the management more professional, the firm had recently inducted Reckitt and Coleman managing director Pranab Barua on its board.Barua’s skills are expected to strengthen Satyam Online as a brand.

The ISP also last week received Foreign Investment Promotion Board approval for its Rs 208.75 crore American Depository Receipts issue – the second from India after Infosys Technologies Limited.