Use your phone to watch a movie, courtesy BSNL

Bharat Sanchar Nigam Ltd (BSNL) is entering the Broadband space with a big bang. Come September, using an ordinary telephone line, BSNL subscribers can have access to a always-on internet which will be five times as fast as an ordinary dial up connection, plus a host of digital broadcasting services, including video-on-demand and videoconferencing. Interestingly, the same line can be deployed simultaneously for voice as well as the internet connection and video-on demand facilities. The price for the service package, though not yet officially confirmed, is being pegged at a rate of Rs 1,000 per month. The service is to be launched in the major metros within the BSNL circles, including Chennai and
Pune.

SC Ahluwalia, Director (Networks Operation Control Center), BSNL, informed that BSNL has had a lot of investments already incurred by way of copper lines, and the value added services would mean only an incremental investment for the company, but could well be a prime source of revenue. Existing OFC lines of BSNL are also being upgraded to Dense Wavelength Division Multiplexing (DWDM) for the same, added Alok Shukla of BSNL. The video server is based out of Calcutta, and a MoU has already been signed with Calcutta-based I-Spatial for server upkeep and content management.

"BSNL is looking at several more partnerships on the content front in the next six months, especially at the local levels," elaborated Ahluwalia. "The subscriber will also have the option of watching the channels available at the moment, that is normal television as we see it today, using a BSNL connection, once we enter into alliances with the local cable operators," he added. By way of hardware all the subscriber will need is a modem and a set-top box. BSNL is yet to finalize the distribution and price-model of the same, but the price of a modem and a set top box can safely be estimated to be well within the sub-Rs 12,000 range. "We may work out a rental or a insurance model for the same," Ahluwalia informed. 

This move by BSNL could well mark the beginning of the Interactive Television era of India, what with the Convergence Bill also being expected to graduate into the Convergence Act by May03. This could also mean that BSNL has found a USP to stay afloat in a market that is being characterized by ruthless rate cuts, cut-throat competition, high churn rates and almost nil returns on investments.

Sudarshana Banerjee

(CNS)