VSNL will set up 2,000 wireless internet base stations across the country at an expected investment of Rs450 crore over the next two years. Wireless internet delivers bandwidth speeds of 75mbps).

VSNL already provides this setrvice in Bangalore where it started the pilot project a couple of months back. In the next three months it will offer the service in Mumbai and New Delhi.

The investment will lead to VSNL being able to roll out wireless internet services to corporate customers in 120 cities when the project is fully implemented in two years.

With this wireless internet base stations project, VSNL will be able to solve the problem of last mile connectivity in difficult-to-access areas to provide internet and data services in the corporate segment. To start with, it will offer "fixed wireless" access, similar to fixed wireless telephone services provided by telecom companies that also include fellow Tata Group company Tata Teleservices'' service under the brand Tata Indicom.

It will provide internet access by installing special equipment in the customer premises by being able to bypass the last mile provided by government owned telecom companies BSNL and MTNL for the first time.

The state owned telcos have a virtual monopoly over last mile connectivity through their national wireline networks.

However, since the wireless internet equipment is bulky, it cannot be used with portable devices like a laptops. Though VSNL has no plans to offer connectivity to homes and individual users, with the trend towards mobile internet gaining popularity, it could do so in the future. For this it is studying the Pune Municipal Corporation''s "Pune unwired" project that uses a combination of long-range wi-max and short-range wi-fi to provide net access in public areas.

Once industry standards for mobile wi-max have been fixed, equipment manufacturers will be able to bring out equipment like laptops, hand held devices and phones at affordable cost for consumers.