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Journalism of Courage
February 22: Addressing a press conference at the signing of the preliminary distribution agreement with Videsh Sanchar Nigam Limited (VSNL), senior vice-president and general manager (India) Bishnu Pradhan said the top ceiling was likely to be $ 3 per minute with further scope for a downward revision.
"We see a tremendous possibility for rates to come down as volumes go up," Pradhan said. The company which plans to launch services in 2001 is currently in talks with the Department of Telcommunications (DoT) for providing service in rural and semi-urban areas. In rural areas where there is no telecom infrastructure users could be charged local call tariffs. "The rest (of the cost) could be adjusted within the existing network," Pradhan added.
The company is targeting six segments for marketing its service: personal phones, rural villages,aeronautical, maritime, cellular services, government, remote business site and transportation. Distribution and marketing will be through VSNL which has exclusive rights for India and non-exclusive rights for neighbouring countries. VSNL is currently holding talks with cellular operators for setting up a distribution chain.
Amitabh Kumar, acting CMD of VSNL, said the public sector undertaking would enter into a joint venture with one or two partners for marketing ICO services. The government is not planning a majority stake in the company through VSNL, Kumar added.
VSNL has invested close to Rs 600 crore in ICO system making it the single largest investment undertaken by the PSU in one project. VSNL will also maintain ICO’s satellite node to be set up in near Delhi at a cost of Rs 60 million. It has projected a revenue of Rs 300 crore to Rs 400 crore for the first two years of operation.
Four companies have signed agreements with ICO for manufacturing handsets. The estimated price of the handset is $700 to $ 1,000. More companies are expected to sign deals with ICO for handsets. The satellite phone can be used as a terrestrial mobile phone when it is within the service area of a cellular operator and switched to a satellite phone outside this range.
The ICO consortium has over 50 investors among which are major carriers like Telstra, British Telecom and VSNL. Kumar said there would be no conflict of interest with Iridium because VSNL was only operating gateway services for it. "Even if we enter into agreements with others (competing satellite mobile services), it will be through the joint venture route. There will be no conflict of interest," the VSNL chairman said, terming its investment in GMPCS, part of its diversification drive.
