The National Task Force on Information Technology in its 108- point IT Action Plan submitted in July (which were subsequently gazetted), had recommended that private ISPs be allowed to set up their own international gateways subject to security clearances. The gateway services had till now been a monopoly of Videsh Sanchar Nigam Ltd (VSNL), which still retains the status for all other applications except Internet services.

However, the action plan is silent on the matter of the private ISPs leasing international circuits to the Internet from other agencies apart from VSNL.If the Hindujas areallowed to set up the venture, which they are confident of, this will be the first time that VSNL will face competition in gateway and international lease circuits markets.

According to sources, the yet-to-be-named company will initially lease 50 Mega bits per second (MBPS) of international circuit to the Internet which will subsequently be increased to 100 MBPS in two years.

However, these circuits will be on satellite, instead of cables which VSNL uses for its Internet services. For this purpose, the company is planning to lease a full C-band transponder. ``We currently have offers from about three satellite companies and will take a decision shortly,'' said a Hinduja source.

The company will not only lease the bandwidth to other private ISPs but also provide the necessary bandwidth to IN CableNet, the Hinduja-owned cable TV distribution company.