Bangalore, June 29: The BPL group's Internet Solution Provider (ISP) business plan is likely to hit yet another roadblock with the Rs 3,000 crore group's ISP head Shivrai Chand putting in his papers.The unexpected delay in introducing its net business across the country in line with leading companies like Satyam and BT is said to be the reason for his resignation from the post.
The BPL group is likely to put WR Rawat in driver's seat to head the ISP business division soon, anticipating an early launch. Rawat is currently working with the BPL Telecom Business Group as head of one of its divisions in Bangalore.
A year-long ambition of the Nambiars to enter into the lucrative and niche market is yet to become a reality. However, the BPL Telecom Business Group is toying with the idea of making its foray into cyberspace in September-October this year.
The group, which was planning to float a wholly-owned subsidiary for its net business, recently conducted an internal meeting to discuss various issuesalong with its dealers. The new entity would be unveiling its net services in September in Kochi. It was also planning to put up an Internet gateway with a cost of Rs 100 crore.
In fact, the group had earlier put its Internet foray on hold when the former communications minister Jagmohan-directed the Department of Telecommunications (DoT) to put some riders for granting the ISP licence to BPL Telecom Business Group. According to industry sources, the group recently received the ISP licence for a country-wide launch. BPL is also in the process of unveiling products like Internet-TV in the domestic market to complement is net services.
However, there was no response to a faxed questionnaire sent by The Financial Express to BPL Telecom Business Group chairman and managing director Rajeev Chandrasekhar and BPL general manager (corporate communication) H Venkatram.
"Since companies like Satyam and Dishnet have already gone ahead with their network and market initiatives, BPL will have to strive hardin the ISP industry though it has enough financial muscle," a top BPL Telecom official said.
Industry sources said the company was going slow with its expansion plans including the ISP business. Though the group had claimed that they wanted to acquire a stake in an existing cellular venture in the South (read Skycell in Chennai or JT Mobiles in Bangalore), no deal has been signed so far.
Once it establishes its net business in the country, the BPL group would be able to offer the Internet services at economical rates as compared to other competitors since the group has already put its cellular backbone and other services in place.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.