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VSAT operators bet on ISP game

The three companies have almost finalised plans to become Internet service providers and are waiting for final service guideline to be announced by the government.

According to industry experts, other VSAT service providers are also preparing themselves to enter the field.

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In fact a few of the VSAT operators have started recruiting Internet technology talent and are preparing to grab the biggest share of the market as soon as the service norms are announced.

"We are aware that the government has initiated a move to allow VSAT service providers to become ISPs. We have decided to initially provide Internet service in the northern region and will extend to other regions, once the guidelines are announced," said a senior executive in Telstra V-Comm.

A few other VSAT operators have also announced their plans to enter full-fledged Internet service. Interestingly, the operators find the Rs 20 million bank guarantee very nominal for starting Internet service.

"We already have the infrastructure and we just need to take a leased line from the nearest VSNL hub to our premise. This should not cost us over Rs 2-3 million. It is a big bucks business. Our company has drafted plans to serve a large number of subscribers," said an executive in Wipro BT.

The operators are confident that they will be able to provide an efficient service at an affordable rate. "Videsh Sanchar Nigam Limited has admitted its inability to cater to the growing demand from potential subscribers. The number of applicants will double due to the recent cut in tariffs. We are ready to take any number of Internet subscribers," said a senior marketing executive in Essel Shyam Telecom.

The company has already placed order for VSATs and a large number of 'ultra-small aperture terminals', or USATs, with STM International, the US-based VSAT manufacturer.

- Compiled from the Indian media

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