Mumbai, Nov 17: E-Connect India Ltd (ECIL), the 100 per cent subsidiary of Zee Telefilms, will launch its Internet services under the brand name ZeeNext in Mumbai, Delhi and Bangalore by March 2000. "We will initially look at providing net access through telecom mode and then get into cable form of delivery," said E-Connect India president and chief operating officer Sunil Jasuja.The services will be extended to the other metros by the third quarter of 2000. Mumbai, Delhi and Bangalore, however, will be the main focus as it constitutes 40 per cent of the Internet user base.
Though the company has done a test run in 200 homes in Bangalore through cable modems, Jasuja said the prices were still expensive for a launch now. "They range from Rs 15,000 to Rs 20,000 but we expect the prices to fall within a year," he said. The company plans to set up its own international telecom gateways within six months in line with its aim to provide high speed access to customers through all emerging modes.
The company will make an investment of Rs 400 crore for its Internet service provider (ISP) business during the next three years, a major chunk of which will be towards infrastructure. "We will break even within three years," Jasuja said. The funding will be through internal accruals and financial institutions. "We are not looking at venture capital funding at this stage," said Zee Network deputy chief executive officer Sainath Aiyer. ZeeNext's cutting edge: It will provide access and content.
Besides, unlike the traditional ISPs which only provide Internet access through telecom network, the company will deliver through cable modems and direct-to-home (DTH). With so many portals like Yahoo.com and Amazon.com, how does ZeeNext stand a chance? "They don't have a delivery mode. We will use SitiCable, Zee Network's distribution arm," said Jasuja. Besides, the company has access to a huge library of Zee's entertainment programming.
ECIL was targeting four million subscribers in net segment and one million subscribers for online access on cable within five years, accounting for 25 per cent market share. The company is planning to acquire content from domestic and international content providers for enriching infotainment value of its portal.
"We are looking at content ownership and strategic partnerships with foreign companies," Jasuja said. ECIL will be providing portal services and e-business, besides Internet services on cable network. "We will not be doing e-commerce but acting as a facilitator," Jasuja said.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.