Siti Cable Plans Internet Foray

Siti Cable has drawn up plans to get into the business of providing Internet services through its cable TV networks spread in 40 cities. Investment in the first phase is estimated to be Rs 4 crore.

Senior executives of Siti Cable, a joint venture between Rupert Murdoch and Subhash Chandra, told Business Standard yesterday that the company would get into the business of providing Internet services through cable because it is the "business of tomorrow".

"A pilot project involving Internet via cable will be undertaken either in Delhi or Hyderabad this month to test the viability of the venture," a Siti Cable executive said. The government recently okayed such ventures.

 

The Hinduja-promoted IN Cablenet, a cable distribution company operating in Mumbai, Delhi and other metros, had successfully experimented in Mumbai late last year a project involving providing Internet services through cable.

Siti Cable executives said in the first phase, Internet services would be offered to its cable TV subscribers and the head-end equipment would need an investment of around Rs 4 crore.

"We are studying the information technology policy to see whether a cable company can also become an Internet service provider or it can only carry Internet services on its networks. If the former case is allowed, Siti Cable may also become an Internet service provider," the executive said.

Siti Cable has two options to offer its subscribers. A cable modem box that can be connected to the subscriber's personal computer or a single box that will not need a PC and will have limited memory and other limited facilities. The cost of such equipment abroad is about $200.

Siti Cable has also drawn up plans to start a cable-delivered Hindi movie channel that will compete with IN Cablenet's Cable Video Opera (CVO). Siti Cinema, as the movie channel has been christened, was to have been launched this month, but was deferred owing to "strategic reasons." Siti Cable is in the process of acquiring rights for cable TV of new movies, an area that is expected to yield them good ad revenue.