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VSNL set to flood services market

VSNL Chairman B K Syngal has been reported as saying, "We really do not know the demand for various services. It has consistently defied the estimates. We underestimated the demand for Internet access in India when

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we introduced it in 1995."

Therefore, VSNL has decided to introduce more services and continue to invest in infrastructure. The strategy is to put increased supply in the marketplace, rather than wait for the demand to mature.

The unstated part of this strategy is that if there is oversupply of services, the new competitors will find it hard to carve out a niche for themselves.

VSNL will introduce 'cyber booths' wherever the gateways are available. First, these will be introduced in six cities that have large gateways like Delhi, Calcutta, Bombay, Bangalore, Madras and Pune. And thereafter, in the second tier gateways like Jalandhar, Ernakulam, Ahmedabad and Kanpur.

VSNL has recently added frame-relay service, data transmission at higher speeds. Laptop service has been added and Internet expansion is continuing. VSNL is planning to introduce handheld satellite phones. He said that the VSNL is not for retail business and it will give the Internet connections to franchisees and entrepreneurs.

The immediate goal for VSNL is to become a leader in satellite telephony that will be introduced in 12-18 months. The company has already ordered equipment.

- Compiled from the Indian media

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