Satyam Infoway, the country's first private internet service provider (ISP), launched its internet access offering here yesterday.
Faced with the prospect of private competition, state-owned provider Videsh Sanchar Nigam Ltd (VSNL) announced it was dropping subscription rates of its internet service by 20-30 per cent.
Branded `SatyamOnline', the access service will be available to subscribers "in just five minutes", Satyam Infoway, a wholly-owned subsidiary of Chennai-based Satyam Computer Services, said here yesterday. The service is structured in three tariff-packages ranging between Rs, 3,900 for 100 hours and Rs 9,900 for 500 hours use.
The first private net connection was presented to Hero Group chairman Brijmohan Lal Munjal.
VSNL has revised tariff for its TCP/IP (transmission control protocol/Internet protocol, which allow subscribers to view graphics besides text) accounts. Under a new package called `Flexihour', a VSNL TCP/IP access for the first 100 hours will cost Rs 3,000 which can be upgraded to 250 hours and 500 hours for Rs 3,500 and Rs 7,000 respectively. VSNL will now also offer a simple e-mail address to its users in place of the existing lengthy address.
The existing tariff structure has three plans: one-year usage of 100 hours for Rs 3,000 at the rate of Rs 30 per hour, Rs 6,500 for 250 hours, and Rs 10,000 for 500 hours. VSNL has about 1.5 lakh subscribers. It plans to increase its spread from 40 centres to 70 by the year-end, besides improving the quality of service by increasing the speed to 56 kilobits per second (kbps) from 33.4 kbps.
SatyamOnline has already sold over 1,500 packages in Chennai and Hyderabad, R Ramaraj, managing director, Satyam Infoway said, adding that the company's target was one lakh customers in the first year.
"We hope to earn Rs 14 crore by March next and break even in about 30 months," he added. He said the company had invested over Rs 40 crore for providing services in 40 cities.
