Close to these developments, one of the two cellular operators in Calcutta, Modi Telstra, has entered into a strategic alliance with Satyam Infoway for offering Internet-related value added services in the city. This is similar to the services announced by a competing cellular operator Command and another Internet service provider Caltiger.com.

Satyam Infoway is the second national ISP with a subscriber base of 1.38 lakh across 38 cities with over 350 corporates using its business- to- business (B2B) products and services.

In Jamshedpur, the company has tied up with the main cable operator Catvision to provide Internet via cable. Under this system, the customer will need an additional equipment in the form of a cable modem and does not have to use pay any telephone charges. The monthly tariff is Rs 1500 on unlimited access.

Satyam Infoway had announced a similar project in December last year under a 50:50 venture with RP Goenka controlled RPG Netcom to provide broadband internet services in Calcutta.

It is understood that the cable modem which has to be purchased seperately, costs close to Rs 15,000 including taxes. Satyam Infoway is holding talks with both in the corporate and retail segment.

At its newly established 39th node at Siliguri, the company will be providing normal dial-up facilities for Internet service to consumers. This node will serve the entire hilly region including Darjeeling, Kalimpong, Kurseong and Jalpaiguri.

Modi Telstra today announced a strategic alliance with Satyam Infoway to offer value-added Internet related services. However, Modi Telstra's chief executive officer Barry Cooney said that under this alliance, new products can be accessed, but refused to divulge the details.

Cooney noted that the products once proven can be sold to both cellular operators and users off- the- shelf. It is not a revenue sharing arrangement, said Cooney and added that the new products will be developed both at Chennai and in Calcutta. Modi Telstra is planning a new line of promotion for the products. On the alliance, a press release quoted Satyam Infoway's chief operating officer George Zacharias as saying: "I am sure our companies will enjoy a long and fruitful association and this alliance is yet another step towards providing their customers with world class services". Cooney pointed out that both the companies are looking closely at mobile commerce.