NEW DELHI: Hugh Escorts Communications Ltd. (HECL) is bracing itself to fight
competition with a slew of value-added services to emerge as an end-to-end
solutions provider in the VSAT segment. With a market share of 66 per cent and a
turnover of Rs 100 crore during fiscal 1999, there is some frenzied activity in
the company today in an effort to not only retain market share but to aim for a
bigger slice, if possible. Says HECL chief operating officer Partho Banerjee,
"Of the installed base of 7,000 VSATs, HECL has installed 3,200 VSATs."
According to Voice & Data estimates, the VSAT market itself is slated to
witness a growth of 60-70 per cent during the current fiscal due to the
successful launch of INSAT 3B, allowing the use of foreign satellites and the
opening up of the Ku-band. Besides, ambitious projects like S Kumars.com have
already set the ball rolling for the VSAT industry.
Recently, HECL bagged the license to become an A category
ISP. "The service will be restricted to corporate customers where the focus
is not to provide access as much as to build value around the access provided.
This will be in the form of providing ASP services, setting up virtual private
networks for corporates as well as integrating dealers, distributors and
suppliers into the principal’s networks," says Banerjee. HECL has a major
presence in the FMCG and banking sectors where it is critical to have constant
connectivity in the entire supply chain.
According to Banerjee, the industry has matured in the ERP
segment and newer applications like CRM and data warehousing are witnessing
hectic activity. And it is here that HECL hopes to make a difference to its
customers by providing such services on an ASP model. Its board of directors has
approved an investment of Rs 250 million towards this end. This is expected to
be a big step towards consolidating HECL’s presence in the sector.
To begin with, all our 175 customers are potential customers
for the service says Banerjee. "And it is not just integration of networks
but we also offer support services for our networks," adds Banerjee to
reiterate the end-to-end VSAT-based solutions that the company has to offer.
HECL’s new services will complement its existing VSAT services and help its
customers ride the next wave of enabling business over the Net.
Commenting on the factors that have hindered the growth of
the VSAT industry, Banerjee said these included lack of transponder space,
interconnectivity issues and speed limits in VSAT-based transactions. However,
recent developments are expected to ease the problem of transponder space. HECL
currently offers VSAT services based on TDMA technology, which allows
connectivity at the rate of 64 Kbps. VSAT networks are essentially closed user
groups where interconnectivity between different VSAT networks as well as public
networks and leased lines are not allowed. Once these issues are addressed, the
VSAT industry will see accelerated growth, says Banerjee.