Asianet Satellite Communications managing director CM Radhakrishnan Nair told The Financial Express that the company has lined up investment plans to the tune of over Rs 500 crore spread over several phases to upgrade its fibre-optic cable backbone and coaxial network in the state. Besides, the company will also set up two gateways in Kerala to provide Internet connections through its cable to customers. The Internet-through-cable facility helps the consumer access the Web without going through a dial-up process.

In a bid to make this service more efficient, Asianet Communications, which is already a licensed Internet service provider (ISP), has approached the authorities concerned for setting up the two gateways in the state. The company is planning to set up one gateway each in Kochi and Thiruvananthapuram. "Once the Centre gives green signal for setting up these gateways, we will move on to the Internet business", Menon said.

Menon said that the company is in the process of adapting to the technological convergence taking place at a rapid pace and the setting up of gateways and Internet service through cable are part of this drive. The company is hopeful of setting up the gateways soon and intends to start providing Internet to its cable customers.

A major hiccup is the high cost of cable modems which convert TV signals to Internet signals. To circumvent this, Asianet Communication is planning to come out with a plan that would absorb or minimise this entry cost by slightly hiking the cable charges.

Menon said that this is in tune with the company's commitment to provide the best quality service to its customers. The cable service of the company is being synergised to combine TV signal transmission, the Internet, and telephony; the last item would be subject to government approval, Menon said. "The company has upgraded its network adequately equipping it to undertake these more advanced challenges', he added.

Taking a dig at the BPL Innovations, he said it was not the policy of the company to dislodge an existing cable operator. "This is evident from the readiness with which those operators in the areas where Asianet operates has joined the company as licensees".

Asianet Satellite Communication, which started operations seven years ago in association worth Pan Asian Systems, is the single largest cable operator in Kerala, with 600 franchisees and over two lakh customer points.