Subhash Chandra chalks out a diversified strategy to meet challenges.Agrani, literally means ‘staying ahead’ in Sanskrit. And that’s exactly what the Subhash Chandra promoted ASC Enterprises intends to do with its Agrani project.
The company has a different strategy in place. Chandra’s strategy is to have a diversified satellite service that blends with his other television and broadcast businesses and one which simultaneously allows him to tap the satellite phone market.
Importantly, Agrani will only concentrate on the Indian sub-continent for its operations. This $755 million project will have only one geo-stationary satellite that is slated to be one of the largest commercial satellites to be launched. The satellite system will be built by the US-based Lockheed Martin which is also an equity participant in the venture.
The company maintains that the system architecture is flexible enough to accommodate varying user needs. That is, this satellite will provide mobile satellite phones which will have one common number all over India. It will have 8,000 circuits for the telecom traffic. The satellite will also house 10 Ku-band transponders that will enable the Zee wing of the business to provide direct to home (DTH) services when it gets approved.
These transponders could also provide high-speed broadband Internet access. And, the satellite also has three more Ku-band transponders for telecom trunking and four C-band transponders for its cable TV business.
ASC, plans to compete with other players on the basis of price and service. It is to price its handsets at around Rs 15,000 to Rs 18,000. The call rates are expected to be around Rs 22 per minute as against Rs 200 upwards charged by Iridium. The Agrani handset will have GSM functionality as well. The company claims that the system architecture renders Agrani one of the cheapest ways to make long distance (500 km and above) calls.
But the going will not be easy. As per latest reports, the company has arranged for $280 million with a host of Indian financial institutions chipping in. The services are slated to commence in 2001.
It appears that Chandra has caught the pulse of converging technologies and in the next millennium will be in almost all the key converging businesses viz., Internet, mobile communications, cable, television broadcasting. ASC Enterprises’ will probably be the pre-emtive move. The move to acquire ICO Global Communications is an indicator of Chandra’s interest in the business.