Cyberwave to offer wireless Internet
By Venkatachari Jagannathan | 05 Sep 2001
Chennai based Cyberwave Internet Solutions Ltd., which offers internet connectivity through cable and dial-up mode, has begun trials of providing the service using satellite, popularly known as wireless net connectivity.
Speaking about the wireless operations, the company's managing director, Mr. S. Sriram said, “Trials are on, but we are not satisfied with the speed. It will take at least one year for the service to stabilize." Bound by a non-disclosure agreement entered with an overseas company for wireless internet, Mr.Sriram declined to divulge details.
Cyberwave is also the licensed dealer for NetGame Products, Israel, whose technology it is using for net via cable service. The company has sold the products to an ISP in Bangladesh and has received inquiries from Sri Lankan and Pakistani companies.. “We will restrict ourselves to supplying the technology and equipment,“ says Mr. Sriram as Cyberwave has no plan of becoming an ISP in other countries.
On the home front he is planning to have franchisees in various cities where he will again restrict himself to being technology/equipment supplier.
Cyberwave started operations last year and got mired into problems almost immediately. Of the three delivery modes, the dial-up did not quite succeed as the company could not match competitors' prices. Cyberwave's microwave service starting from 64 kbps speed upward, was targeted at corporates. Unfortunately, corporates preferred taking dedicated leased lines from VSNL and others.
Similarly on the cable front too Cyberwave is not free of troubles. The business plan was to ask the cable TV operators to invest in the infrastructure and restrict the company's role as an ISP. However cable operators were not willing to invest in the two-way amplifiers and other equipment. Besides two multiple services operators - Hathway Cable & Datacom Private Ltd and Sun Cable Vision inked a non competition deal and divided 80 per cent of cable operators among them.
As a result Cyberwave's plans went awry and the company had to make additional investments in the cable network to roll out services. There was more trouble with the company not being able to source bandwidth from the VSNL. As a result it lost nearly 500 subscribers. The company tied up with Singapore-based SingTel to source 4 Mbps bandwidth at a cost of Rs 1.4 crore.
The Rs. 5.3 crore equity based Cyberwave closed last year with an income of Rs.1.11 crore and an after tax profit of Rs.12, 000 as against a projection of Rs.8.84 crore and Rs. 1.78 crore respectively.
Today the company's customer base comprises hotels, residential premises and cyber cafes.
