According to Sify chief operating officer George Zacharias, Sify will use the satellite capacity primarily to offer corporate clients dial-up services, retail Internet services, data centres and rapid setting up of iZones - its Internet cafes across the country. The company chose New Skies because of its delivery capability, scalable and robust technology, apart from plans to put up additional facilities, he said. Also, the multi-homing satellite links of New Skies will enable Sify to offer its customers faster internet connections through fewer router and network hops, reducing congestion and loss of IP packets, he added.

The Hague-based New Skies has a fleet of five satellites in geosynchronous orbit and ground facilities around the world. It has two satellites under construction, one of which - NSS-6 - is dedicated to Asia. The fixed satellite service company offers video, voice, data and Internet communication links. It began as a spin-off from INTELSAT, the US-based international satellite communications organisation, two years ago and completed its privatisation with an IPO last month. It's revenues were $ 82 million in the first half of 2000 and is listed on both the Euronext Amsterdam exchange and the NYSE. Apart from Satyam, in India it's clients include STPI, BSES, Cityonline and Sun TV, who take bandwidth from it.

According to Mr Rudo Jockin, senior vice president of New Skies, India is its busiest market and accounts for five per cent of its total business and 25 per cent of Internet business.