VSNL, Raheja to launch cable net service

The cable company has a strong base in Mumbai where it has around half a million subscribers 8212; accounting for nearly 50 per cent of its all-India customer base. It is also present in Delhi, Chennai, Pune, Bangalore, Hyderabad, Ahmedabad, and controls Asianet Satellite Communications.

Like what Zee and other cable companies have proposed, Hathway will lease cable modems to make it more economical for the user. It is looking at a two-year lease rental of around Rs 700 plus a flat fee for surfing. Unlike dial-up internet access where the user is billed on an hourly basis, the company will look at two modes of payment. Under the first scheme, billing will be based on the amount of data downloaded. In the second scheme, the user would be connected to the internet 24 hours. quot;We are hoping more users would opt for the Always On scheme,quot; said Shrikhande, adding that the schemes would be fine-tuned and adapted to usage patterns once the service was launched.

The price to the end-user would depend on what VSNL would charge for internet access and other parameters, Shrikhande said. However, it would be significantly cheaper than dial-up access which works out close to Rs 48 per hour Rs 28 telephone charges and Rs 20 internet charges, he asserted. A senior VSNL official said revenue sharing and pricing details would be worked out by the management. quot;Nothing has been decided as of now,quot; he said.

Initial users are expected to be mostly corporates who can use the mega bandwidth provided by cable to connect as many as 16 PCs on a single line. Cable modems would also be more affordable for corporates as compared to home users at their existing price of 250 a piece. In six months, prices are expected to drop to around 150 bringing it within the reach of homes. quot;Ultimately we are looking at homes because we are cable company,quot; said Shrikhande.

The firm is also in talks with software and media companies for developing local multimedia content. This will be a major thrust area for the company especially in the home sector.

The trial runs, which are being conducted at the Microsoft office, Oberoi Towers, Booz Allen Hamilton, Ernest House Society, Price Waterhouse and Thomas Cook will continue for the next fifteen days before commercial services commence.