Bses In Talks With Best For Network

BSES, the power distributor for suburban Mumbai, is in the final stages of laying 1,000 km optic fibre network in its licensed area wherein the Internet service provider (ISP) business is being carried out by its subsidiary BSES TeleCom.

However, because the power distribution business is shared in greater Mumbai, BSES has found itself cut off from the bigger pie in south Mumbai.

BEST, on the other hand, holds the license for south Mumbai which has a high concentration of corporate users and high net-worth households.

Senior BSES confirmed that a proposal has already been submitted to the BEST board which is in the process of deciding on its future.

BEST earlier had plans of laying its own optic fibre network in south Mumbai which has yet to fructify. It is understood the BSES proposal includes sharing the cost of laying the infrastructure with BEST, but officials declined to divulge more.

In its licensed area alone, BSES has a total customer base of 2.1 million which it can access through its network. It also plans acquisitions for last mile connectivity to reduce its dependence on outsourcing.

BSES chairman and managing director R V Shahi said the company's primary and secondary network will become operational by December. Of this, 15 per cent will be for distributing power while the balance 85 per cent will be used for telecom services.

The company has targeted Seepz, an industrial zone in the suburbs of Andheri, for pulling in commercial customers, while its will target residential users in Bandra. If the tie-up with BEST works out, BSES TeleCom can also a host of consumers in the southern Mumbai.

BSES TeleCom has lined up investments of Rs 350 crore over the next three years and close to Rs 1,000 crore over 6 years to expand its ISP and related business. It plans to come out with an initial public offering next year to fund its expansion plans.

In addition, the company also plans to set up call centres and data centres across India, and a chain of 100 Internet kiosks across Mumbai through a separate joint venture with Sriven Multitech. The first call centre will soon open in Hyderabad.