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Monday, August 23, 1999

Intel dealer to diversify into Internet services 

Nitya Varadarajan  
Chennai, Aug 22: Intel Solutions partner, Gemini Communications Ltd, is planning to diversify into internet services, starting with Coimbatore where the company has a strong distribution/reseller network.

Gemini Communications is a network solutions provider and till recently, was an agent for VSNL's internet services. The company is also planning to launch computers under its own brandname. These factors will enable the company to provide customers a complete package of accessories with the internet services. "We will be a one-stop shop for anyone aspiring for internet access for the first time. The installation of the computer, LAN networking and maintenance and internet services will be taken care of under one roof," said company general manager Eswaran Annamalai. The company's services would be cheaper by about 20 per cent as it will offer a total package with the hardware.

Gemini Communications will be able to set up the infrastructure required to provide the services at very competitive costs, byvirtue of its association with Intel. The infrastructure is expected to cost Rs 60 lakh for Coimbatore city.

Despite national players like Dishnet already operating in Coimbatore, Annamalai is confident of facing competition as Gemini's feedback from Coimbatore has it that services provided by existing players are not quite satisfactory. The company is targeting a customer base of 1,000 in the first year of operations. A bandwidth of 256 kbps will be adequate for a start and later, the company would increase it to 2 mb, on demand.

According to Annamalai, it is better to perfect a network in one city and then link up with other cities. This ensures lower investments, better service, faster breakeven (in the first year itself) and realistic targets. "We cannot see huge money by being a `C' category license holder, but there will always be sizable profits," said Annamalai.

"We can change our marketing strategy overnight, which national players cannot do," said Annamalai. "For any internet player,optimisation of services is important and that is easier if the service network is not huge. Even if we have 100 telephone lines for starters, we would like that to be utilised 24 hours a day and not merely during daylight hours," Annamalai said. Gemini is coming out with a pricing strategy to ensure this.It will also undertake direct promotions with customers, though reselling will be done through its strong reselling network.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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