"We are in the last phase of the deal and VSNL has assured us that the final clearance shouldn't take much time," said Stefan Kollar, sales director, Intersputnik.

VSNL is already using Intersputnik's space segment, based on the Express Satellite, for telephony services between Belarus and India. VSNL has shown interest in Intersputnik as there is substantial traffic between India and the Commonwealth of Independent States.

Intersputnik, which will launch the LMI-1 satellite by August-end, has also held discussions with VSNL about the leasing of satellite space. Intersputnik India representative Ravina Khurana, who met VSNL chairman-cum-managing director Amitabh Kumar last week, said, "we informed VSNL about the new satellite and will work out the details with them."

Intersputnik is intalks with several broadcasters like STAR TV and Zee TV to sell satellite space. The representatives also met the Hindujas, who are planning to make an entry into internet in a big way. The team will visit the southern states to tap regional channels like Sun TV and Vijay TV.

Though premier channels like STAR TV, Sony Entertainment Television and Zee TV are on AsiaSat and PAS4, Intersputnik believes broadcasters will need additional capacity. "Though channels have signed up long-term treaties with different satellites, media groups are looking at entering into internet and other related areas. We hope to capitalise on that," said Satish Bangara, vice-president, marketing and sales, Lockheed Martin Global Telecommunications.

Intersputnik, Kollar said, is ideally suited for internet service providers as the satellite has a global reach. While AsiaSat is China-centric, Pas-4 is more a connectivity satellite. "Regional operators can't provide our reach. We can be an internet connectivity backbone to the USand Europe," said Kollar.

Channels like Sun TV, Asianet and Vijay TV were on Intersputnik's Gorizont satellite years ago but decided to leave the space segment. Admitted Kollar, "channels were not satisfied with the picture systems. They needed to have a tracking system which proved expensive. The lifetime was also five years."

Intersputnik has tied up with Lockheed Martin to manufacture and operate four communication satellites. The first advanced LMI-1 satellite, to be deployed at 75 degree east, will carry 28 C-band transponders with a bandwidth of 36 MHz and 16 Ku-band transponders with a bandwidth of 27 MHz. The lifetime is 15 years.

Intersputnik has sold 25 C-band and eight Ku-band transponders even before the launch of the LMI-1 satellite. "We have sold 75 per cent of the capacity," said Kollar.

The LMI-1 satellite can be used for digital and analog TV, VSAT, internet, voice traffic, multimedia services in the Indian subcontinent, China, South-East Asia and Arabian peninsula.

The LMI-2satellite, to be launched in two years, will connect North and South America while LMI-3 will provide access to Asian and European countries.