Brief

Broadband now over VSAT

Sanjay Tari, GM, Strategy & Business Development, Tatanet

Expanding its operations in public domain services, Tata Indicom VSAT Services (TIVS) has announced the launch of ‘TNET Xplore,’ which is broadband Internet over VSATs (Very Small Aperture Terminals).

The service, aimed primarily at SMBs, aims to tap the potential of this segment by offering competitive price points with reliable and fast connectivity over VSATs.

“TNET Xplore has an advanced level of bandwidth on demand and offers tiered services with metered usage. This means the service offers a wide range of options from small usage to unlimited packages for cyber cafes,” said Harish Keswani, National Manager, Products and Alliances, Tatanet.

“The customer has to invest in VSAT equipment which begins at an initial cost of Rs 99,000 plus taxes. He can then choose from the bandwidth plans (see table) that suit his requirements. He doesn’t need an expensive router.”

Since the product cannot compete with the price points of DSL, it will focus only on the market where DSL is either not present or does not render satisfactory service. The new service banks on improved satellite technology which has the capability to serve the end-customer in a cost-effective manner.

But why VSAT over other connectivity options such as fibre? “Fibre connectivity is available in major towns, but many parts of India’s vast rural areas are still deprived of it. These are the areas where last-mile connectivity is primary concern. Besides, the Rs 600 crore VSAT industry in India provides a reliable alternative to the SMBs,” said Sanjay Tari, General Manager, Strategy & Business Development, Tatanet. According to him, VSAT provides 24x7 connectivity and can be quickly deployed anywhere.

In the first year of the launch of this service, TIVS anticipates Rs 35 crore revenue by setting up 3,000 VSATs with an average revenue per user of Rs 40,000.

Major players in this space include HECL, Airtel and HCL Comnet. These three (along with TIVS) currently enjoy an equal market share of around 25 percent each.

TIVS has ambitious plans to take VSAT services to homes by introducing cost-effective broadband services and receding equipment cost. Tari explained, “In the US, VSAT is a large market even though there is wide fibre penetration. Wild blue, Direct Way and Star band are the three VSAT service providers in the US. The services are available with a self-installing manual and cost the user $40 per month.” He believes that the Indian market will soon follow the same path.

TIVS has been using VSAT technology to serve the Tata group of companies for a long time, but the company entered public domain services only in 2003. The company now boasts of 200 customers across verticals such as manufacturing & distribution, banking & finance, government and PSUs, media, services, pharmaceuticals and defence.

Gujarat Co-op Milk Marketing Federation, Raymond, Hyundai, Nestle, Godrej, the Taj Group, Kotak Mahindra Bank, Sterlite Industries and NIIT are some of the company’s prominent VSAT service clients.

— Shivika Sood