Satyam Infoway gets license for 5 gateways - Views on News from Equitymaster

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Satyam Infoway gets license for 5 gateways

Feb 23, 2000

Satyam Infoway (Satyam) has got a license for establishing five international gateways in the country. The company will be able to provide direct connectivity to the customers to access the net through these gateways. Satyam Infoway one of the Internet Service Providers (ISPs) has over 87,000 subscribers with services being offered in the 27 cities throughout India. The revenues of the company for the first half stood at Rs. 208 m with around 40% of its revenues from internet services, another 40% from the internet roaming software and the balance from e–commerce, EDI and ATM relay services.

Satyam has a requirement of 120 mega bits per second (mbps) as against the existing facility of 92 mbps. (The cost per 2 mbps bandwidth works out to Rs 4.2 m.). These gateways would enable it to meet its full requirements.

Satyam is among the first ISPs that have got this permission for setting up international gateways after the government allowed private ISPs the freedom to use foreign satellites and KU-band for Internet connectivity.

Till now, all private ISPs could only use the gateways of VSNL and DOT/MTNL for Internet connectivity. Besides, private ISPs will be free to bypass VSNL and be free to choose the media –based on commercial considerations.

Satellites could be one of the media as a means of providing broadband access. The usual set–up is for the upstream signal (e.g. the subscriber to the Internet) to be transmitted via the telephone line, while the heavy bandwidth downlink is provided via satellite. Satellite broadband delivery is very efficient and cost effective: a satellite beam can cover very large areas and connection can be provided easily with no need to roll out extensive terrestrial plant and equipment.

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