MUMBAI, JAN 20: The Videsh Sanchar Nigam Limited (VSNL) is in talks with cable operators for providing internet services on cable networks. The service is likely to take off within the next three months and will be targeted at corporates.The public-sector undertaking which was the monopoly internet service provider (ISP) until recently, has already tested the technology with the Hinduja-owned IN cable network. The test was successful and VSNL is currently in the process of identifying companies which can provide maintenance and service at the customer end.The ISP would provide the connection till the cable operators' end beyond which servicing and support could be done by cable modem companies like 3Com, Samsung and Sony. According to a senior VSNL official, the cost of such a cable internet service is likely to be one-third that of a leased line connection, despite the cost of cable modems being on the higher side.Cable modem prices start at around Rs 12,000. Each modem offers a speed of 34 Mbps(mega bits per second) downstream and 10 Mbps upstream. Around 16 PCs can be connected to a single cable modem, offering an alternative to leased line connections. Leased line charges are currently around Rs 10.5 lakh per annum (VSNL) and Rs 8.5 lakh (Satyam Infoway) for 64 Kbps speeds.The cable internet service will primarily be targeted at small corporates who need leased lines, the VSNL official said. It hopes to score over the competition by starting services much ahead of the six-month time frame most cable companies with ISP licences are looking at.Over the issue of data loss due to haphazard cables lines running over trees and houses, the official said if the returns were attractive the cable operator would not mind investing in a well-laid coaxial cable. Besides, the service would initially concentrate only in a few pockets like Nariman Point and Andheri where corporates have set up offices.Cable internet is generating considerable interest among ISPs here although it has not been verysuccessful in the United States which is among the most-developed of internet markets. Forrester Research forecast 60 per cent of the US internet subscriber market would stay with dial-up access even by 2002. Ajit Balakrishnan of Rediff on The Net, a leading online content provider, estimated cable internet penetration would be even lower in India at around five per cent.Notwithstanding these glum projections, Satyam Infoway, India's first private ISP, also announced it is exploring tie-ups to provide access through cable, last month. Even cable operators have evinced a lot of interest in the new service and approaching ISPs for it, as in VSNL's case.
