Net4India to invest Rs 250 cr in ILD

Chennai: The Internet service provider (ISP) Net4India has decided to venture into international long-distance (ILD) telecom services. The company has already submitted its application to the government, as the segment will be opened on 1 April 2002. As per department of telecommunications directives, the company expects the LoI to be offered in about three weeks. Net4India plans to invest 250 crore over a period of two years for offering ILD services in the market.

Says Net4India CEO Jasjit Sawhney: We are at the helm of a major revolution in the Indian telecommunications sector today. The international voice market in India is at around 2.6 billion minutes at present, and it is expected to grow exponentially in India with the introduction of competition. We are very excited about this phase in our business.

About the need for the Indian telecommunications industry to focus on pricing advantage, he says: High telecom rates for domestic and international long-distance calls are detrimental to the commercial growth in a fast-paced global economy. At a time when capital markets are drying up, thus making it difficult for tele-companies to raise money to build a new infrastructure, the significantly lower costs of IP telephony make it a better alternative.

At present Net4India is in talks with prospective international telecom carriers to become strategic partners for call origination and termination. The company is in a position to begin its services within eight weeks once it procures the licence.