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May 1-15, 1999 COUNTRY BUZZ |
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INTERNET SERVICES Wipro, Bharti BT Internet, Zee Prepare for ISP Launch
Informing this, Anand Talwai (photo), chief executive, Wipro CSD, said, "We should be starting our Internet services by June this year and have invested Rs 25 crore in this new company." Wipro Net has already obtained a nationwide ISP licence from the Department of Telecommunications (DOT). Considering the high cost of setting up Internet business, Wipro Net is also looking at the possibilities of an equity partner. "We are looking at someone who can add value to the business in terms of service knowledge and international connectivity, probably a telecom multinational." Wipro Net's search for a telecom multinational partner comes in the wake of Bharti BT Internet Services entering the ISP fray with British Telecom as its foreign partner. Bharti BT Internet Ltd, which has been accorded an all India Internet Service Provider (ISP) status recently, will commence services in Delhi, Bangalore and Mumbai shortly. N. Arjun, Bharti BT Internet CEO, says, "The company has drawn up elaborate plans to attract a large customer base and retain them through affordable and qualitative services. We expect a customer base of 75,000 by the end of the year." Bharti BT Internet is a 51:49 joint venture between Bharti Enterprises and British Telecom. Already, the ISPs are fighting for a larger market share through lower tariffs. Dishnet Ltd, an earlier entrant, has offered so far the lowest triggerring a rate-cut war. "What we will offer is a value proposition. We will give our customers a choice of tariffs which will be service-based," Arjun said explaining Bharti BT Internet's strategy. The ISP business is one with high consolidation rate as it progresses. Many entrants are likely to either sell out or completely shut shop in the course of time due to intense competition, fact Bharti BT Internet is aware of. "We initially expect about 250 ISPs to enter the market which is likely to come down to 150 by the end of the year one, another 50 by the year two and about 20 by the end of the year three," Arjun said. He added that consolidation would happen as and when mergers and acquisitions take place in the ISP business. "Our aim is to become one of the leading ISPs in India," he added. Subhash Chandra promoted Zee Television Ltd (ZTL) plans to invest over Rs 400 crore in its internet-on-cable project over the next 5 years. The company would offer a 38 Mbps connectivity to its subscribers via cable modems, with a data transfer speed which is 800 times faster than 36 kbps speed offered by telephone modems. The cable service would be priced at Rs 1000 per subscriber per month. Company officials say that the biggest hurdle is the pricing of the cable modem, which the company would distribute on a lease rental basis at Rs 500 per month initially. ZTL would later explore the possibility of entering into an agreement with a finance company. "The biggest advantage of the cable modem is that it does not involve any telephone charges and the speed of downloading is much faster," an official says. Meanwhile Siti Cable which is Zee's ground distribution outfit, is already in the process of setting up a Subscriber Management System (SMS) for the Internet project. In case of a default on subscription payment one can easily shut off the service at the end-user's side from the control rooms. Till now, DOT has awarded ISP licences to around 90 companies; another 150 are in the waiting. Bhubaneswar-based Ortel Communications Ltd, the cable TV network operator, has become the first private Internet Service Provider (ISP) in Orissa. It flagged off its services on the 28 March in the twin cities of Bhubaneswar and Cuttack. Called SkyCable Internet Services, the company has started with dial-up services first. S.K. Senapati, Ortel's deputy chief of Internet Services, said that the field trials for commissioning high speed access (HAS) to the Internet via cable modems was also launched recently and this service would be made available shortly. SAP's South Asia Arm Goes For the Big Growth Push
The company's clout in the Indian market was evident at ProcessTech '99, billed as the first ever business technology conference for process manufacturers in the Asia-Pacific region, which concluded in Mumbai recently. The conference was organised by SAP India in association with the Confederation of Indian Industry (CII). ProcessTech '99 provided a forum for the process manufacturing industry to exchange ideas and information and brought together management leaders, technology experts and key executives from leading multinational and Indian conglomerates on a common platform. Ruth Connolly, executive vice president (Indian sub continent), SAP, said, "ProcessTech '99 provided an opportunity for major players in the manufacturing sector to get an insight into the emerging business technology landscape. With the business models faced by challenges of globalisation, the conference presented a chance to take advantage of the best practices from around the world." Progen Develops ERP-in-a-Box for SME Segment Progen ERP Systems, has developed PERP-an India specific ERP Solution targeted at small and medium enterprises in the country. The package covers all functional areas like planning, purchasing, stores, quality control, production, sales, accounts, excise, costing and human resources. J.R. Priolkar, managing director, Progen says, "PERP is an innovative ERP Software which cuts through the complexity usually associated with ERP implementation and operation. Average implementation time of PERP is less than two months." The package can run on various network operating systems like Windows NT, Novell Netware, and Linux. "Besides being Y2K compliant, all components of PERP are also Euro compliant, enabling the user to conduct business in any part of the world and compete in rapidly changing global scenario. In addition PERP is fully compliant with all laws and statutory rules. The components of PERP can handle all statutory requirements related to excise, sales tax, income tax, employment tax, PF, ESI and Companies Act," says Priolkar. The package has already been implemented in 11 sites in India. These include Beiesdorf India Ltd, Wallace Pharmaceuticals Ltd, CFL Pharmaceuticals Ltd, Cosme Remedies Ltd, Cosme Pharma Ltd, Timblo Ltd, Sigma Labs, Adel Labs, Adelphi Pharmaceuticals, and A.W Faber Castell India. Perle Offers Remote Access Systems for ISPs
John Feeney, chairman, Specialix, says, "We plan to continue with Apcom as our sole distributor for both product lines, thereby retaining Specialix's established mind share in the market and exploiting Spacialix's reputation in the market to push Perle products. In addition we are scouting for third party organisations which can undertake repair of Perle and Spacialix products." The first of the Perle products is expected to hit the Indian market by early May. BFL Shifts Focus To ERP, Online Commerce
B. V. Venkatesh (photo), president and CEO, BFL Software, says, "We soon plan to exploit new business opportunities, besides software development which is the company's mainline of business. Areas such as data creation and validation, for instance presents huge opportunity and we wish to expand into such areas." BFL which doubled its revenues in fiscal year 1998-99, would be unable to achieve 100 per cent growth in the current fiscal due to drop in revenues from Y2K conversion projects. "Y2K was one time opportunity which we captured. Around 24 per cent of BFL's revenue of Rs 100.2 crore made during fiscal 1998-99 came from Y2K conversion projects. This year we expect to grow by around 40 to 50 per cent," he says. The company's projected revenues for the current financial year is Rs 150 crore. |
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At least three major entrants Wipro Ltd, Bharti BT
Internet and Zee Telefilms are preparing to launch their Internet services. Wipro Ltd has
spun-off a wholly owned subsidiary, Wipro Net Ltd, which will handle al the
Internet-related businesses. Wipro Net was earlier the Communications Services Division
(CSD) of Wipro. The assets of this division, valued at Rs 25 crore will be now transferred
to the new company. 
SAP South Asia Pacific, the leading
provider of integrated end-to-end business applications solutions, is preparing to push
growth and expansion of its operations in India. It has already appointed Ruth Connolly as
its executive vice president for its Indian subcontinent operations. The company has
emerged as a market leader in client/server enterprise application software, providing
comprehensive solutions for companies of all size and all industry sectors. 
Close on the heels of acquiring the
UK-based Prominent Industries Ltd-the holding company for Specialix International Ltd, the
Canada based Perle Systems Ltd plans to extend the former's portfolio of networking
products in India by augmenting it with its own brand of remote access equipment. Perle
sells directly through value added resellers (VARs) and system integrators while Specialix
operates in India through its sole distributor-the Chennai based Apcom Computer Ltd. 
In an attempt to shift its focus from
hardcore software development, BFL Software Ltd is looking at business opportunities in
the areas of information management services. Besides, the company also plans to set up a
development centre in Bangalore with an investment of Rs 20 crore. The new development
centre, the company's sixth, would soon be followed by additional software development
centres in India and abroad. 
