Reliance, WorldTel tie up to create Net centres

BANGALORE: Reliance group and WorldTel of the UK have signed a joint venture (JV) to create a network of Community Internet Centres (CICs) in Tamil Nadu.

The project cost for the first phase is likely to be about Rs 400 crore. The Tamil Nadu Government, through Electronic Corporation of Tamil Nadu (Elcot), will hold 26 per cent of the equity, while the remaining would be shared equally between Reliance and WorldTel.

The JV would build and operate a supporting infrastructure for Internet service in the state. A press release issued by Reliance said this was the first major information technology and telecom project under the new telecom policy of the Government. The JV project would network Tamil Nadu's villages and towns and the rest of the world through the CICs, making it the first state to initiate mass application of IT, the release said.

The JV would operate as an Internet service provider (ISP) in the region, integrated with the backbone Internet service infrastructure. It plans to create at least 1,000 CICs in Tamil Nadu, with about two to 20 computer terminals in each centre. The CICs would be created on a franchise basis, and would also offer several other business services such as fax, PCO, photocopying, e-mail etc.

The JV aims at reducing the Internet charges, thereby promoting the usage of Internet. The network would initially use dedicated leased lines from VSNL to provide Internet services, with plans to create its own independent infrastructure in the future, in line with the Government policy of opening up international gateways for ISPs.