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Rediff.com  » Business » Tata Teleservices embarks on cyber cafe thrust

Tata Teleservices embarks on cyber cafe thrust

By Joydeep Ray in Ahmedabad
January 17, 2003 16:11 IST
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Tata Teleservices Ltd, after launching its mobile and fixed wireless and wireline services based on the code division multiple access technology, is now planning to enter the internet cafe business, popularly known as cyber cafes, under the Indicom brand.

TTSL is planning to launch its Tata Indicom Net Stores for the first time in Gujarat and has invited applications from prospective franchisees.

TTSL will let the franchisees use the brand name, Indicom Net Store, and will have a revenue-sharing agreement.

Tata Internet Services Ltd will provide the Internet connections for now and once its merger with the TTSL is over, TTSL will have the final authority on these cyber cafes.

TTSL is targeting existing cyber cafes across major cities in Gujarat such as Ahmedabad, Vadodara, Surat and Rajkot, while smaller cities such as Navsari, Vapi, Anand, Jamnagar and Bhuj will be looked at in the second phase.

The chief operating officer of TTSL, Gujarat, Jagrut Vyas, said, "For the time being, the cafes will have internet connections from TISL, which is our group company but in a merger stage with us. We hope that beyond this March, the merger will be concluded and by then the Indicom Net Stores will be kicked off and the process of opening such stores will go on for next 30 months."

The usual cyber cafes of today, according to Vyas, will be provided with higher Internet speeds which will enable the surfers to access faster and cheaper.

"These cafes will definitely have a different look from the usual ones and it will provide all required facilities for the net surfers which are not commonly available," Vyas said on Thursday.

On how many such net stores are being planned, Vyas denied to divulge the specifics saying, "We just have opened the process of discussion with the interested cyber cafe owners and also for the people who wish to open such cafes with us."

TTSL is looking at cybercafes with ample space to install at least six computers with a minimum 200 square feet area in prime locations.

Slashes tariff in Gujarat: Within 24 hours of Reliance Infocomm inviting bookings for its CMDA-based services on Thursday, TTSL has slashed its tariffs for CDMA mobile phone subscribers and also introduced new tariff plans.

As TTSL has been earning 3-5 per cent of its revenue in Gujarat from international long distance calls, it has also announced a straight 20 per cent discount on all ILD calls for its mobile subscribers.

Not only that, the main obstacle of investing a good amount of money to buy CDMA handsets for new subscribers, has now been eased as TTSL has also announced its strategic tie-up with three banks, including one co-operative bank in Gujarat, besides Standard Chartered Bank and Citi Bank.

"Now the aspiring TTSL CDMA mobile customers will have an option of buying handsets through easy finance options which we are going to provide with immediate effect through these three banks. We have also cut down the amount of security deposit for subscribers interested to take only local call facilities in their TTSL's mobile connections which will help them to minimise the initial investment," Jagrut Vyas said.
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Joydeep Ray in Ahmedabad
 

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