The Hindu Business Line : VSNL doing due diligence of Dishnet

EYEING BROADBAND: Mr Ratan Tata, Chairman, Tata Group, checking out the latest model of CDMA handsets on display at the Tata Indicom pavilion at the Supercomm 2004 in the Capital on Wednesday. The group is conducting a due diligence of broadband company Dishnet DSL. -- Kamal Narang

New Delhi , Feb. 4

VSNL is in the process of doing due diligence on the Internet services business of the Chennai-based DishnetDSL Ltd which it proposes to acquire soon.

According to Mr Kishore Chaukar, Managing Director, Tata Industries, the due diligence process is being completed and a final decision will be taken soon.

Speaking at the inaugural function of Supercomm India 2004, an annual communication and IT event, he said, "We are doing a due diligence of a broadband company which has a broadband subscriber base of 30,000 customers. Once we make an acquisition, we will have a starting point in the broadband arena.''

Although Mr Chaukar refused to identify the broadband company, it may be recalled that in end-January, VSNL had informed the stock exchange that it was considering the acquisition of Dishnet, subject to legal, technical and financial due diligence that would be carried out.

``The Tata group feels that India will find its place in broadband capability. The factors that will drive broadband growth will be its availability, quality and awareness. To drive down costs, it will be through sharing of infrastructure by players since it would not be affordable to have 5-10 networks.''

He also said that voice, data and broadband would be the key to engendering telecom revolution in the country.

The broadband services are needed in the country for expanding business, health, productivity, education, entertainment and e-governance.

Mr Ratan Tata, Chairman of the group, who made a brief appearance at the Tata Indicom Stalls of the exhibition, refused to speak to newspersons on the telecom and broadband plans.

The event, being held from February 4-6, has participation of 110 companies, including 35 overseas companies, and over 20,000 buyers in the form of business visitors.

The event has two tracks of conferences running simultaneously that include distinguished speakers who are leaders in their chosen fields.

The sessions will cover relevant areas like wireless, policy, IP, satellite communication, IT applications, certification policies and investment scenarios.

The key exhibitors are BSNL, Reliance, TATA and MTNL. Other notable participants include LG, STPI, Elcina, ABTO and TEMA.

The supporting country is Canada and the event is put together by the Telecom Industry Association (TIA) and Inter Ads.