Meanwhile, the company is also tying up with MaGlobe, a UK-based ISP, to enable Primesoftex clients to access their Internet connections from across the globe.

The company has tied up with US-based MCI Worldcom for its opitcal fibre gateway in Mumbai, with Teleglobe Inc for the Cochin gateway. The other two gateways are satellite gateways. Primesoftex has entered into alliances with Singapore Telecom for the Delhi gateway and Loral Cyberstar for the Bangalore gateway. The company expects these gateways to be operational by early next year, with the Delhi one being commissioned in January itself.

The company plans to invest Rs 300 crore in the entire venture. Of this, the company has already put in Rs 15 crore through internal accruals and plans to tap the capital market for additional investments. "Next year, we will either raise the money though an ADR or go public or through private placement of shares," said Mr Agarwal.

Primesoftex Limited, a listed company on the Delhi Stock Exchange, was incorporated in 1984 as a complete software development center.

It plans to provide Internet Services on all India basis. In the second phase, it plans to provide Internet services in Chennai, Calcutta, Hyuderabd, Cochin, Pune, Ahmedabad, Noida and Gurgaon. "We will later expand to each state capital," he added.

According to him, PrimeNet backbone is designed to provide redundancy. The international connectivity is available on both the media i.e. satellite and submarine fiber injecting dual advantage of reliable satellite connectivity and lowest possible ping time on fiber for tome critical applications, he added.

Alternatively PrimeNet is also reducing dependency on the satellite route by installing private satellite gateways from various satellites and in different frequency band (C band, extended C and KU band).