Videsh Sanchar Nigam Ltd. (VSNL) plans to offer Internet services across the country. This was revealed by a leading financial daily.
VSNL is India's monopoly provider of international voice telephony and the largest internet service provider (ISP) in the country. As at September 30, 1999, it had 285,000 internet subscriptions.
VSNL wants to launch Internet services to other cities in the country, where it operates international exit points like earth-stations and gateways. Currently, VSNL offers services in six cities Mumbai, Delhi, Chennai, Calcutta, Hyderabad and Pune. Once the Department of Telecom (DoT) gives VSNL the green signal, it will be able to offer its services to 22 cities.
Once VSNL gets the go-ahead for expansion to other cities, it will be able to optimise its existing infrastructure more effectively.
VSNL Internet offensive will gain steam only after its expands its services to other Indian cities. Once VSNL does that, there will be a dramatic rise in Internet subscriptions. Even at current level of operations, its competitors find it difficult to compete with VSNL head-on. As yet, no single competitor has given VSNL any sleepless nights. Once VSNL extends the power of the Internet to other cities, competition will find it very difficult to steal market share from it.
However, ISP companies are now allowed to set up their own getaways. This will reduce their reliance on VSNL's infrastructure. Once this happens, ISPs will be able to expand their operations without any infrastructural concerns.
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