Tata-owned Videsh Sanchar Nigam Limited (VSNL) has launched its Internet over cable broadband offering in Mumbai. Considered to be a soft launch, the service is expected to be available to about 30 cities in India over the next two years. At VSNL’s annual general meeting (AGM) in Mumbai, the company’s chairman Ratan Tata emphasised that broadband would be a major thrust area in the years to come. “The Tata Indicom Cable link from Chennai to Singapore is currently in progress and will be ready for operations over the next few weeks,” Mr Tata told shareholders. 

The Internet over cable broadband business will be routed through the existing cable television network. Later, officials told the media that the offering would initially be pre-paid. “Depending on how it emerges, we could offer the post-paid option” they said. This is said to be a key market in the near future. At this stage, users typically opt for the dial-up service through an Internet service provider (ISP). VSNL is targeting a revenue of Rs 350 crore from broadband VSNL’s service is being offered at Rs 360 per month at a speed of 512 kbps. 

According to Mr Tata, VSNL will be introducing bandwidth on demand as well. “Our focus will be on broadband connectivity. During the year, we acquired the assets of Dishnet for Rs 270 crore part from acquiring the rights to use 23,000 kms of fibre capacity from Bharti,” he added. On offering end-to-end solutions for corporates, Mr Tata pointed out that this would also be another market for VSNL. “We will offer quality services in the spheres of voice and data apart from video,” he said. 

“Today, over 60 per cent of VSNL’s revenues come from telephony and the thrust on broadband is expected to generate new revenue streams.” According to Mr Tata, the new wave of broadband is being pursued with the objective of providing total connectivity. “We will pursue the triple play - voice, data and video in this changing scenario,” he explained. Mr Tata described the telecom scene in India as “vicious” and said it was necessary for VSNL to offer high quality services at the best price.