Cisco will also provide equipment and end-to-end solutions to help ModiCorp expand its operations by helping it set up ISP operations, Internet Data Centre (IDC), and Call centre. "We are setting aside $10 million worth of equity money of ModiCorp for setting up the IDC and call centre, which should be in place by early next year," said Modi.

The two companies are also exploring the possibility of entering into a tie-up for establishing an IP-based long distance network for ModiCorp, in the three states where it has telecom presence. Additionally, ModiCorp intends to engage Cisco in providing technical consultancy for projects.Meanwhile, ModiCorp and Cisco are exploring the possibility of working under a two-tier reseller programme to promote ModiCorp's products and services along with Cisco's equipment. Cisco Systems shall also provide training to ModiCorp personnel on product updates, equipment configurations and other courses available to its customers. "Our sales people will be trained on Cisco's product range as well and will sell it to our existing clients."

According to Modi, the underlying principle, behind the tie-up is that it's not easy for Cisco to reach the smaller customer, who needs the networking products, but does not have enough information about latest technology. The benefit to ModiCorp is that it can leverage the products and technology of Cisco.

The MoU with ModiCorp is Cisco's first such tie-up in India. However, it is not an exclusive tie-up and both the companies will be free to enter into similar arrangements with other companies, pointed out, Gary Jackson, vice-president -- Asia, Cisco Systems.

Meanwhile, according to Dilip Modi, who heads the cellular division of ModiCorp, the group plans to move into the Application Service Provider (ASP) space as well, either through a tie-up or on its own.

...Seeks alliances for NLDO venture
ModiCorp plans to enter into alliances with other telecom companies, for its venture into National Long Distance Operations (NLDO). According to BK Modi, this will help fund the investments required in setting up capital intensive project and also enable the company to provide better and more efficient service to customers at lower prices.

The company will announce a final plan for the NLD operations by August 15, when the NLD will be opened up for private participation. The company also plans to leverage its microwave network in Punjab and Calcutta and fibre optic network in Karnataka for its operations. It also plans to use Voice over Internet Protocol (VoIP) networks for NLD, whereby voice packets are transmitted. This is different from Voice over Internet which is banned right now, says Umag Dass, CEO, Spice Telecom.

ModiCorp is also planning to provide a language oriented Internet services. "We will be the first ISP in the country to do so," said Modi. The company will develop Web content in local languages in alliance with some other companies. It plans to introduce this localised Short Messaging Services (SMS) by early next year.