VSNL to buy Dishnet's Net, DSL business

VSNL to buy Dishnet's Net, DSL business

Friday, 23 January 2004, 08:00 Hrs
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NEW DELHI: Tata-owned VSNL is planning to buy DishnetÂ’s Internet and digital subscriber line (DSL) business for Rs 309 crore. The proposal was discussed at VSNLÂ’s board meeting on Wednesday and will be again taken up in the next meeting.

For the Tatas, the move will represent consolidation of their telecom business, gaining a jumpstart over principal rivals in broadband services, and diversification into the wireless data transmission business.

Dishnet has applied to the Department of Telecommunications (DoT) for frequency in the 450 Mhz band, and has offered to pay a licence fee of Rs 500 crore for 5+5 Mhz frequency all over the country. The company would also pay a revenue share of 15 per cent per annum.

In its proposal to DoT, Dishnet said that it would use this only for data purposes.

Dishnet pioneered DSL in India. DSL technology uses the existing copper network to offer broadband connectivity at a speed of up to 34 Mbps.

Source: IANS
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