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Advantage VSNL - Views on News from Equitymaster
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  • May 3, 2000

    Advantage VSNL

    Due to the phenomenal growth of dot com companies in India as a result of the advent of internet, e-commerce etc, the methodology of doing business is being redefined. More and more companies are going online and conducting transactions and business processes through the internet.

    Throughout the world there are estimated to be 350 million users on the net and over a million sites exist. As far as India is concerned internet was introduced in 1995 and has ever since had 0.7 million subscribers spread across 100 towns.

    VSNL,which is a telecom company specifically focussed towards the internet and international telephony is the largest internet service provider with a focus on retail and corporate internet services. This will fully enable dotcom companies to optimise opportunities offered by the net.

    VSNL operates a nationwide network of internet nodes which provides points of connectivity to the corporates and ISPs and is conducted to global internet points of presence through a bandwidth of 335 Mega Bytes per second (MBPS) which will be expanded to 500 MBPS shortly.

    This bandwidth is derived from a combination of high quality satellite and fibre capacity. Connectivity costs for satellite based leased lines have been lowered by 50% and those for fibre based leased lines by 40% by VSNL. Cash flows on the internet arise out of pure internet access, portals, e-commerce, advertisement, software services and web content.

    New opportunities that are coming up include wireless application gateways that facilitate the provision of mobile internet services, XML for e-commerce and Voice XML for voice based interactive internet services.

    All these technologies such as XML, X HTML, WAPVoiceXML, security and certification oriented services and transaction oriented net services are evolving and changing continously.

    Indian dotcom companies should pre-empt being up on the net and being part of global developments by driving technologies introduced world wide and leveraging their software strengths and entrepreneurial spirit.

    VSNL provides a platform for this through immediate hosting of applications and services on web servers at its various nodes. The range of facilities extended offered range from internet leased lines, connectivity to internet backbones, website hosting with Application Services Control and complete physical hosting of web servers in VSNL premises and international private leased lines for direct connectivity

    With the advent of IP V.6, a new technology that facilitates speedier and wider net access, tremendous developments are taking place on the internet which together with the Internet Mobile world will reach out to larger customers. Gradually because of a paradigm shift every company would need to add net enabled business to its repertoire in addition to its traditional bricks model. This presents tremendous opportunities for VSNL and Indian dot com companies.



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