Sources in the Vadodara Telecom District office told Express Newsline that Reliance has been conducting extensive surveys in the city over the last six months. The target groups mainly comprise corporate bodies, businessmen, private telephone operators and STD/PCO booth owners.

Sources added that Reliance Telecom Ltd was most likely to use either the radio or satellite mode of connection within the city limits. This wireless technology -- much more sophisticated than DoT's underground cables will make for speedier connections and keep at bay the sundry complications that arise out of faulty cables.

According to sources, at least 30 former Tata Telecom employees were now working for Reliance to supervise the laying of a wide network of optic fibre cables connecting Jamnagar, Ahmedabad, Gandhinagar, Mehsana and neighbouring areas.

If not half, Reliance's pre-launch marketing strategies seem to have won a quarter of the battle, with private exchange operators in the city already considering the industrial giant a viable option to DoT. The reasons range from use of sophisticated and advanced technology to a more profitable deal. And, of course, the absence of red-tape.

Talking to Express Newsline, Anuj Khare of Mahabali Group (India) said that the Reliance deal would be uncomplicated, practical and cost-effective for private exchange operators. ``Reliance proposes to use the 2 mb line, which is a four-wire line allowing 30 connections at a time. This will ease much of our work,'' he said.

Private operators could also earn more commission from Reliance than DoT, he said, adding that while DoT paid a commission of 20 paise per unit call upto 10,000 calls, 15 paise per unit call for the next 10,000 calls and 10 paise per unit thereafter, Reliance was expected to charge the operators Rs 10-12 lakh annually.

``Even after paying that amount, we will have a larger profit margin as our earnings from the monthly bills will stay,'' he explained.

While no information on Reliance's per unit call charge was available, DoT staff members expect them to be comparatively higher than the department charges. However, they admitted the high rates may not deter potential subscribers, adding that there was every possibility of the new exchange stealing a considerable number of DoT subscribers.

``The company is focusing on those in white-collar jobs, who, obviously, rate speed, quality and efficacy over money. Though DoT has also introduced new technology, it has been confined to the exchanges. Out in the field, we still have the cables,'' said a department staffer.

However, he expressed confidence that DoT would continue to dominate the rural market, as it would be a long time before Reliance's quality cardĪReliance or other private parties ventured in there.

The imminent competition does not bother DoT General Manager Rakesh Babu.

``The volume of our work is much larger and I'm sure that Reliance will cause no immediate dent in our market,'' he told Express Newsline. While Reliance was being ``somewhat secretive'' about its plans, the DoT department was taking steps to improve its services, he added. ``In a larger set up there are definitely some problems. We cannot devote the personal attention to each subscriber in the same manner as private operators. But I see the competition as a healthy sign,'' he said.