MEN
has floated a wholly-owned subsidiary, MEN Interactive Network Ltd (MiNET), that
will kick off the groups broadband intentions with its launch of broadband
internet service in the Indian city of Pune. According
to Mr. Ajit Pradhan, the chief executive of MiNet, the service will make internet
access faster and more affordable. And, why not? Internet connectivity, given
through the TV or the PC, at the subscribers option, will cost as low as
Rs. 100 to Rs. 750 per month, depending on the range of services opted for by
the subscriber. Further, the subscriber is also spared additional telephone costs.
The range of services
extend from the very basic with 64 kbps speed, with mail, chat and browse facilities,
to 512 kbps speed with value added options such as video and audio on demand,
gaming services, web hosting, data storage and mining, dedicated leased line and
server co-location. While
the company plans to start trial launch in mid-November, the service will be open
to customers by the end of December 2000. The company has plans to launch
the service in other cities including Ahmedabad, Delhi, and Bangalore will follow
within the first six months, and connect 40 cites in a hub and spoke pattern by
2002. Mr Pradhan said
Pune was selected to launch the services due to its higher PC penetration, and
its strong international gateway backbone. Pune boasts of two gateways, one belonging
to the countrys international telephony provider, VSNL, and the other provided
by the STPI, the software technology park set up the state government. The
city also claims to have a higher internet awareness among its cable operators,
with a large section of cable operators already offering internet services through
cable to its subscribers. Cable
operators are crucial to MiNET's working, since the last mile connectivity will
be carried out through existing cable operators. This is where the parent companys
role comes in. MEN, with its presence in the cable TV market, has strong links
with over 40,000 cable operators all over the country. MiNET too, is tying up
with a number of cable operators to provide its services. MiNET
would be investing Rs. 94 crore on equipment, Rs. 190 crore on telecommunication
costs (for upgrading last mile connectivity), and has planned for a revenue expenditure
of Rs. 655 crore over the next five years
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