Jain Studio chairman JK Jain told The Financial Express that the company would provide Internet access software on a CD-rom for a one-time charge of Rs 500 after which a subscriber would be given unlimited access to Internet free of cost. Jain Studio will be the second company after Caltiger to provide free ISP service but the first one in Delhi. The service will be known as freedialin.com.

The ISP service would be later expanded to other cities across the country.The Rs 165 crore investment is being made in two-tiers, Jain said. While Rs 45 crore is being invested in the first tier, the balance Rs 120 crore would be invested in the second tier.

"Our strategy is to give first rate free Internet access. We realise that quality is a key for this. The objective is to give not only free service but quality service," he said.The company proposes to initially issue a limited number of connections to avoid clogging of its infrastructure, he said. The company would expand the subscriber base as the capacity is expanded. "We intend to be the number one ISP in Delhi in three months time," he said.

On the revenue model, Jain said his company would make money from value added services such as the payment gateway, five in-house portals, e-commerce, advertisement and sale of bandwidth on its gateway to other service providers. HDFC Bank is the acquiring bank for the payment gateway.Jain said his company would be the first in India to implement convergence in the Internet and television broadcasting business by broadcasting Internet data over its television channel Jain TV.