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This week we focus on a complete analysis of the
internet backbone industry
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Pioneer Online to invest Rs 100 cr on setting up six ISP gateways 

Sudipto Dey  
New Delhi, Jan 20: Hyderabad-based internet service provider Pioneer Onlineplans to invest upto Rs 100 crore over the next three years in setting upover half a dozen ISP gateways across the country. The first in the seriesof several such earthstations are to come up at Hyderabad and Bangalore,company officials said. Four other gateways are slated to be put up in Northand West India.

For the purpose the company has initiated talks with satellite serviceproviders for buying transponder space. Talks are also on with financialinstitutions for part financing of the gateway project.

Speaking to The Financial Express, Pioneer Networks managing directorP Sridhar Reddy said the company wants to be in the business of offeringbandwidth to ISPs. Reddy said the company is awaiting government go-ahead toput the gateways in place.

The company sees a big business opportunity in providing bandwidth toprivate ISPs, Reddy said.

The company might go for a public offer at a latter date to fund its forayinto gateway business.

The company is in the process of expanding its ISP services to other partsof the country. Launched in May last year, the company claims a subscriberbase of around 6,000. Reddy said the company plans to start its services inBangalore over the next one year. Offices are also slated to be set up inmetros across the country. The company on Thursday launched, Alladin, thefirst in the series of solution packages for ISPs. Targeted at small andmedium size ISPs, the ready-to-use solution based on Linux platform, allowsservice providers to cut on start up time and bring down costs drastically.

Reddy said it typically takes between three to six months for ISPs to set upoperations. "Through our ready-to-use solutions, ISPs will be able to cutstart-up costs by up to 50 per cent," Reddy said. The company developed thehardware and software solution in-house at its development centre inHyderabad.

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