BSNL-SIS to offer video phone device for Rs 15K

For the first time in the country, Ahmedabad-based IT solution provider, Sai Infosystems (India) Limited (SIS), is set to launch video phone service in Gujarat in association with BSNL. While the state-owned telecom operator will provide its broadband network, SIS is its technology partner which has developed a soft switch that will be installed on BSNL's network.

"We will be providing a complete technology for video phone alongwith audio as well as video devices and will also install an exchange at BSNL's premises. Running purely on a broadband connection provided by BSNL, the video phone service will need an IP network connectivity with a minimum bandwidth of 256 kbps," said Sunil Kakkad, chairman and managing director of SIS, refusing to divulge investment details of the project citing non-disclosure agreement with BSNL.

According to Kakkad, the IP audio device will cost around Rs 2,000-3,000 while the video device will be priced at Rs 15,000-16,000. "The prices will come down in near future even as the volumes increase. While we are conducting a soft launch on Saturday, May 15, the commercial launch will take place within a quarter," said Kakkad.

The devices will be offered on either one time purchase basis or on monthly rental basis.

It needs to be mentioned here that earlier Ahmedabad-based Renovau Telecom India, a subsidiary of UK’s Renovau Telecom was also in the process of developing a carrier grade multi-media telephone exchange capable of switching DVD quality video telephony and video multi-casting, and was in talks with BSNL.

Given such projects, SIS is planning to raise funds in the region of Rs 50 crore to Rs 100 crore through venture capital or private equity in the near future.