The Hindu Business Line : VSNL to launch low-priced broadband service

VSNL is aggressively expanding its Internet and broadband business by extending its reach to over 100 cities. The company is making large investments to launch its broadband services at tariffs comparable to dial-up accounts.

The broadband services will be launched in eight cities initially for as low as Rs 389 for a connection that offers 200 megabits download or 20 hours of surfing, making it one of the cheapest in the market.

"Pricing will be a key tool for VSNL's broadband strategy. We are offering broadband services at price points that is similar to that of a dial-up account and that is unmatched within the industry," said Mr Prateek Pashine, Head (Retail).

Almost 70 per cent of VSNL's investments are being utilised to ramp up its broadband network. VSNL currently has 30,000 broadband customers and eight lakh dial-up users.

Mr Pashine said that the broadband connection will be built into VSNL's `Total Internet' package which would allow its dial-up subscribers to access broadband services.

VSNL plans to launch broadband services in four metro cities and Bangalore and Pune this year.

The company has already launched a pilot service in Mumbai and is in the process of laying a `Metro Area Network' in eight cities. The `Metro Area Network' is the basic infrastructure required to offer broadband services.

VSNL is also in talks with large national banks for selling its Internet package through the ATM.

The company already has a similar tie up with ICICI Bank across over 2,000 ATMs.

It is also looking at ramping up its cyber cafes and launching Wi-Fi enabled services. VSNL has taken its reach from 22 cities in January to 100 cities in August.