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Global Telesystems to sink Rs 2 billion in ISP venture

"We expect DoT's reply soon and see no problem in this regard," Speciality Projects Head Pavirra Kumar Roy has been quoted as saying.

T O D A Y

• Death postponed • HCL bags big ERP job • NIIT shopping in US • GT's Rs 2b ISP bet

Global Telesystems will also provide backbone services like gateways, leased lines and Internet servers.

The initial investment will be around Rs 2 billion, to be increased to Rs 5-6 billion depending on the subscriber base, capacity and demand.

The company is already into e-commerce, voice and e-mail and fax services.

Global is also planning Web hosting, servicing Web and transaction based services and provides Internet connectivity to users. "Our Internet charges to users will be less than VSNL's or will be at par with them."

The company has already invested Rs 2.23 billion, and currently has a mesh configuration that includes nine cities.

This will be further expanded to 27 cities for both Internet and intranet services. The company boasts of 5,000 customers in two years and around 20,000 users. It has corporate clients like ITC, Bajaj, L&T, Reliance, Hindustan Lever.

The bandwidth for its Internet services will be initially 2 MBPS, which will then be increased as the traffic increases. The company is also looking at the possibility of leasing the bandwidth to some of its corporate clients.

- Compiled from the Indian media

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