Worldtel, Tn In Pact For Net Project Centres

The state government and the UK-based WorldTel yesterday signed a memorandum of understanding (MoU) for an `Internet community centres project. WorldTel will chip in with equity worth $ 50-60 million. The project promises to provide Internet access at half the prevailing rates.

The agreement was signed between chief secretary A P Muthuswamy and WorldTel chairman and former C-DoT chairman Sam Pitroda.

WorldTel will rope in a local partner (likely to be the state-promoted Electronic Corporation of Tamil Nadu) as well.

The cost of the project, the funding pattern and capital base of the special purpose vehicle (SPV) will be finalised after the business plans for the `Internet community centres' are ready.

The project's blue print is to be finalised in 90 days.

Each kiosk would cost about Rs 15 lakh, Pitroda said after the signing of the MoU.

Based on this figure, the project cost would be about Rs 150 crore.

Similar projects are being negotiated with the governments of Kerala and West Bengal, Pitroda said.

WorldTel's other projects include a $100 million WLL (wireless in local loop) project in Mexico and another $45 million project in Azerbaijan.

In Tamil Nadu, talks are on for a communication network for the electrical utility and a fibre optic network for Madras Telephones.

The state government has roped in WorldTel to implement its plan for providing Internet access in the entire state in the next two years.

The facility will provide links between all towns in the state and the rest of the world, state Chief Minister M Karunanidhi said.

Besides providing basic information, Internet is to be used for healthcare, education, trade and commerce.

Over 1000 Internet centres will be set up in the state.