Bharti BT Internet Ltd is also moving on similar lines. For its internet service business, the company has decided to enter into strategic alliances with modem, telecom and computer producers in the country for sourcing these products either on original equipment manufacture basis or co-branding basis.The idea behind co-branding is to retain a personal touch in products and services offered by Bharti BT to its Net clientele which is likely to be to the tune of 75,000 in the country. With this strategy, the company would be able to make available its brand name on each and every product offered.

The company, which is unveiling its internet services in the country on April 30, is learnt to have initiated talks with PowerTel Bocca, 3Com and GVC for sourcing modems, whilepreliminary talks with Compaq and HCL would lead to a tie-up for home PCs. Confirming this, Bharti BT Internet chief executive officer N Arjun told The Financial Express that the company would like to explore this opportunity as part of its foray. "We are talking to several computer and modem manufacturers for co-branding their products for our customers," he added.

The company has appointed 100 dealers in Bangalore where the company will launch its internet service. The dealers, along with offering services, would supply accessories like modem, home PCs and other related equipment needed for the Net service.

As part of its marketing strategy, Bharti BT is planning to enter into alliances with cellular service providers in three leading areas - Mumbai, New Delhi and Bangalore. "Talks are on with JT Mobiles, Spice Telecom and AirTel for offering special incentives on Net connections to their mobile customers," he added. However, the company is not utilising the cellular providers' cell backbones inrespective areas. Bharti BT has already leased DoT lines in Bangalore. But it is believed that leading infotech groups like Satyam and Wipro are talking to Spice Telecom for utilising its cellular backbone which is to be completed soon.

The company is setting up its Net gateways in three places -- Mumbai, Bangalore and New Delhi -- with a total outlay of Rs 50 crore. While the Delhi unit would be utilised for the company's own purpose, the other two facilities would be earmarked for small internet service providers.

However, Arjun said the company was awaiting formal guidelines on this. If the Union Government insisted on implementing monitoring equipment as part of the internet gateway, the cost of setting up such facilities would be higher.

Arjun said the company has an equity base of Rs 22 crore which would be increased by an additional Rs 10 crore in a phased manner. The additional funds would be raised as term loans from banks and financial institutions. Targeting a revenue of Rs 25 crore, thecompany may break even in the second year of operations with a marginal profit, he added.