The Spice network, set up with an investment of Rs 25 crore, covers districts of Udupi, Chickmagalur, Hassan, Hubli, Dharward and Belgaum. It is learnt that the unavailability of frequencies on DoT leased lines in peak hours was the major hurdle that prompted Wipro to utilise the Spice network, on a revenue-sharing basis.

Spice, which provides cellular services in Karnataka and Punjab circles, is also in talks with other internet service providers for the same. The backbone implementation was completed last year in association with a Siemens arm.

Confirming this, Wipro Net chief executive Anand Talwai told The Financial Express that the company had already concluded technical tests and other modalities and a formal announcement would be made within a couple of weeks.

He said Wipro Net was planning aninitial public offering (IPO) in the next three years. For the purpose, Wipro, which holds 55 per cent stake in the Rs 25-crore equity capital, was willing to offload a part in the venture. However, details were still being worked out, he added.

Wipro Net, which launched its corporate internet services here on Thursday, has set a business target of Rs 200-250 crore for the fiscal 2002, with a revenue of Rs 17-18 crore expected during the current fiscal. "We are also planning to launch ISP services for the residential segment soon," Talwai added.

The internet services, aimed at the corporate sector, would cover eight cities and another 20 would be added in a phased manner. The initial outlay for the purpose is Rs 15 crore and another Rs 50 crore investment is in the pipeline which will be raised from internal accruals and equity from the parents. Wipro Net is a 55:45 joint venture between Wipro Ltd and the $8-billion KPN (Royal Dutch Telecom).

The services offered by the company include internet access,e-mail, Web hosting and virtual private networks (VPNs). Over the next three months, Wipro Net will offer a slew of services like secure mail, plug-n-play VPNs, managed firewell services, managed virtual private networks, managed Web hosting services, application services like ERP-on-the-Net and virtual education networks.

According to Wipro Ltd vice-chairman Arun Thiagarajan, the company will also offer end-to-end internet-based business solutions including content creation and Web applications to corporate customers.