Low-cost computing and broadband penetration in the country is set to get a boost with Bharti Airtel, India's largest telecom operator, launching a low-cost online computer powered by Microsoft and Nivio.

Priced at Rs7,999, the Airtel Net PC is a plug-and-play online computer with a 15-inch LCD monitor, mouse, and Nivio companion (which enables the PC to connect to a backend Linux-run server for storage and applications).

Initially introduced in Delhi, Gurgaon and Noida, the computer will be available at Airtel and Next Electronic stores. Customers can also opt for a package that does not include the monitor for Rs4,999.

The hardware and software (genuine Windows XP) for the Net PC will be provided by Nivio and Airtel will provide the internet connection.

According to K Srinivas, joint president, Bharti Airtel, Airtel will provide 10GB space to store documents, images, and presentations at a central location at its own data centres along with regular original software upgrades. The Net PC is a low-energy device consuming only 5-10 watts of electricity.

The Net PC is an industry specification for a low-cost personal computer designed primarily for internet use and the computing needs of small businesses.

The Net PC is also known as thin client, since it comes without CD-ROM or hardware expansion slots. However, net PCs come with their own limitations, like not being able to support games or software downloads.

Srinivas said that it cost only around Rs9,000 as a one-time investment. There are not recurring costs on maintenance / upgrades, etc. Additionally, no upgrades are required, since the computing power is provided by the globally distributed NivioGrid he added.

Srinivas said Airtel is initially targeting around 1 million subscribers which include the company's existing broadband customer base and new customers and expects first-time buyers to go for Net PCs. Additionally, the company expects small businesses that have limited computing needs to go for NetPCs as they will be charged for only for services and applications they need. Airtel will first gauge the initial response and iron out the glitches, if any, prior to a pan-Indian rollout across metros and select towns he said.

Chennai-based Novatium Solutions had, last November, launched a similar online personal computer, the Nova netPC. It had a tie-up with BSNL, MTNL and Tata Indicom for broadband services.

The service is currently available in Kerala, UP, Tamil Nadu, Bangalore, Cuttack, Bhubaneswar, Haryana, Lucknow and the North East telecom circle.

Novatium expects a subscriber base of 200,000 nationally by the end of this fiscal. It is also available in some parts of New Delhi through a tie-up with MTNL.