labels: it news
Chennai to become a big `hotspot''news
Venkatachari Jagannathan
12 October 2006
Chennai: After becoming the preferred investment destination for global telecom hardware companies, Chennai will soon become a hotspot of different kind.

If Dishnet Wireless Limited's plans fructify, the city will soon become one big internet hotspot-an area where one can access the web with a laptop.

The company has announced its plans to set up worldwide interoperability for microwave access- popularly known WiMax- infrastructure all over the city enabling its subscribers to access the net even from the roads.

Says senior vice president Ram Shinde, "We have sought permission from the municipal corporation and others for setting up the required equipments atop of corporation lamp posts, buildings and other places for this purpose."

Launching the WiMax services in the city, Dishnet Wireless intends to invest $100 million in expanding the service to 44 Indian cities in three phases. During the first phase the company would focus on the metros and even tier II cities totalling 10. In the second phase 24 more cities will be added and in the final phase WiMax will be rolled out in 10 cities.

Earlier part of the C Sivasankaran promoted Sterling group, Dishnet Wireless is now part of Maxis, Singapore and Apollo Hospitals joint venture. The duo bought the company along with Aircel- two mobile phone service providing companies- for nearly $1 billion from the Sterling group. The Maxis-Apollo combine has plans to invest around $2 billion in the telecom business.

The commercial launch of WiMax has come nearly a year behind schedule. Last year when Dishnet Wireless launched its wireless internet fidelity (WiFi) services (a wireless net access technology) it said WiMax services would be shortly introduced. (See: WiFi unplugged and The impending WiFi war).

"We were testing the services for the past one year. We have around 100 clients now," Shinde remarks.

On the other hand the company slowed down its WiFi expansion phase. "The existing WiFi hotspots were in low PC penetration areas and didn't get us revenues," he adds. Now with WiMax technology capable of powering the WiFi hotspots as well, he says a subscriber can now access the net from indoor and outdoor.

While WiMax and WiFi may look similar in terms of wireless net access, actually it is not. The WiFi spectrum is unlicensed whereas WiMax requires license. In the case of WiMax, the reliability is higher and the quality of service is expected to be better than WiFi.

According to Shinde the total internet subscribers in India is around seven million and around three million have an 'always on' broadband connection. "The Indian internet access market is around $360 million. The share of corporates / small and medium enterprises (SME) is around $255 million and balance is the broadband connection."

But the growth over the previous year is just 2 per cent. "The company that owns the last mile / access to customers' premises is at an advantage. With WiMax, Dishnet Wireless hopes to overcome that disadvantage. Shinde hopes WiMax to increase internet penetration fast.

As to the company's business plan, Dishnet Wireless will initially target the small and medium enterprises (SME) and the big corporates. The home segment is out of the company's radar as the hardware cost is around Rs4 lakh. If taken on rent, the annual rental is Rs30,000 with a minimum subscription amount of Rs5 lakh per annum.


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Chennai to become a big `hotspot''