'In three years, terminals will be cheaper by half'

HECL has launched high-end satellite-based distance learning programs.
Pradman Kaul, chairman and CEO, Hughes Network Systems speaks on their
viability, and also on the SpaceWay satellite project:

HECL has recently launched DirecWay service. What is it about?

HECL has launched DirecWay Global Education Service by tying up with the
universities like IIM- Khozikode, XLRI, Western University in Australia and
University of Phoenix in the US. Distance learning centers have been set up at
Delhi, Mumbai, Kolkata and Bangalore, and the studio has been set up in Gurgaon.
Using this facility, corporates can opt for management development or corporate
training programs, at different levels from different universities.

We have started with education services but are also looking at a whole set
of new services like Internet, corporate intranet, multicasting, and different
forms of IP casting.

What is the cost of DirecWay service for corporates?

At present, the cost of DirecWay terminals is $1,000, but in the next three
years, the cost will come down to $400-500. Apart from this, corporates will
have to pay a minimum monthly rental of $60-70, which can increase depending on
the usage pattern.

How is SpaceWay, the next-generation broadband satellite, different?

SpaceWay will deploy three satellites, one each in Europe, Asia, and Latin
America. The project will be first deployed in North America in mid-2003 and
will be based on Ku-band. Each satellite will possess a bandwidth of 10 GB and
switching will take place directly on the satellite. The satellite has a bitrate
of 400 Mbps and will carry voice, data and video. SpaceWay will focus on India,
China, Taiwan, Korea and Japan.

What will be the cost of SpaceWay service for the corporates?

The end terminal will cost $500-600 and the monthly rental will come around
Rs 1,500 for SpaceWay services.

SpaceWay requires a huge investment for Asia-Pacific operations. How are
you planning to move in this direction?

We are talking to major telecom service providers in India and China, for
forming a team of 4-5 companies for financing the Asia-Pacific operations. We
need an investment of $750 million here.

Pravin Prashant