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Thursday, Jan 10, 2002

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DishnetDSL: Hopes of cash break-even by March

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DishnetDSL expects to achieve cash break-even by the year ending March 31, 2002. It is expecting revenues of around Rs 10 crore. In three years, the company hoped to report revenues of around Rs 100 crore, said Mr Srinivasan.

In three years, the company expects almost 70 per cent of its revenues to come from its Internet business (digital subscriber line, dial-up access and the Internet hubs set up by the company) and the remaining 30 per cent from value- added services like virtual private network that it has started offering.

He said that the cash breakeven was made possible by the increase in the number of subscribers, both DSL (digital subscriber line) and dial-up, and also because bandwidth prices had dropped by almost 40 per cent over the last two years. He, however, declined to reveal the breakeven figures.

The company has around 20,000 DSL (digital subscriber link), and around 280,000 (gross) dial-up subscribers.

Mr Srinivasan said that DishnetDSL had stopped its post-paid dial-up offering except the Freedom Plan (Rs 990 for 12 months) and was instead focusing only on pre-paid customers. The decision to stop the post-paid offer was because it was difficult for the company to track its customers even in case of delinquencies in payment.

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