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Global Electronic to sink Rs 1 b in Net services

The company, which has invested Rs 1billion in the project, will use the investment to upgrade equipment and service.

T O D A Y

• Season's grabbing • Infosys's bonus issue • Global's Rs 1 b bet • Landmark year

Global Electronic was issued an 'A' category Internet licence on December 10, 1998, for launching Internet services. Global Electronic Managing Director Fritz D'Silva said that the company is setting up an international gateway for efficient routing of Internet traffic.

"We want to be in control of the traffic and make it highly efficient and qualitative.'' An Internet gateway costs Rs 150-200 million.

Among the 60-odd approved Internet service providers, most will use VSNL infrastructure. "As and when the volumes grow, a gateway based on satellites will prove highly advantageous,'' D'Silva said.

The company would primarily focus on the corporate segment, providing e-commerce, EDI services, corporate messaging and management of network services. "EDI is the most popular form of e-commerce, and enables trading partners to exchange information with high level of security and reliability over the network,'' D'Silva said.

Browsing facilities will be given for a select few for the time being. Global Electronic also plans to offer international connectivity - both last-mile connectivity and direct selling.

It has entered an alliance with Afnet of the US to distribute its traffic in India. It also has technical pacts with Microsoft to provide Internet servers, and with Nortel for multi-services switch for virtual private networks. "Global plans to expand services to include intranet and extranet services,'' D'Silva said.

He said the whole gamut of services on offer would make the company a one-stop solution provider.

Internet service is part of the company's efforts to move up the value chain. Global Electronic will launch services in class B cities like Baroda, Surat and Coimbatore soon. In all, the services will be available in12 cities, including the four metros.

The services will be launched through a network of franchises.

The rates will be similar to VSNL, which charges Rs 10,000 for flat 500 hours. "We are targeting a turnover of Rs 350-400 million in this fiscal year,'' he said.

"Our Internet business will be through franchisees, which will be developing the market and will be supported technically in customer relations,'' Fritz said. Global Electronic will have a fee-sharing agreement with them.

The company will also provide an international roaming facility. Global Electronic will provide its customers a list of international ISPs and the corresponding dial-up numbers in those countries.

- Compiled from the Indian media

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