According to sources, the group is putting in place a cable network inChennai to create an Internet backbone and plans to cover the entire gamutof communications business in the near future.

"The group is aiming to offer value-added Internet services to the masses bynext year," the sources said and added, "the group also wants to provideservices which will be cheaper than ice creams and e-commerce will be anintegral part of it." A housewife will be charged a pittance for placingorders with neighbourhood shops through the Net, the sources said added thatthe group plans to increase business volumes by offering competitivelypriced services. Talks are also on with several hardware manufacturers tomake cheaper terminals that can be used for e-mail and for surfing the Net,the sources said.

Sun TV plans to raise Rs 1,200 crore through an initial public offering(IPO). There will be 25 per cent equity dilution and the issue will bethrough the book-building process. The IPO is slated for June and the facevalue and the premium band are being worked out. Kotak Mahindra Capital hasbeen appointed lead manager and advisor to the issue. The company has beengrowing at over 40 per cent since its inception in 1991-92.Sun TV has signedagreements with a Hong Kong-based networking company which will provide thebackbone and with Singapore Telecom (Sing Tell) for bandwidth.