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Dotcom firms hesitate to join VSNL project

25-December-2000
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Dotcom firms hesitate to join VSNL project

The country’s largest Internet service provider, which has sought bids from dotcoms, has received a lukewarm response from portals, mainly due to stringent conditions stipulated by the company for accepting dotcoms as its partners, according to a top company official. The state-run firm may even be forced to set up its own India-specific portal. Its earlier strategic alliance with indiainfo.com, the Raju Koneru-promoted portal which was reportedly in financial trouble, has fallen through. As per the agreement with indiainfo.com, VSNL was to pick up 30 per cent equity in the dotcom and indiainfo.com was to offer it a bank guarantee of Rs 200 crore and 20 per cent of its revenues. The ISP’s main purpose in partnering a dotcom was to utilise the dotcom’s portal as VSNL’s default home page for all its customers and use its marketing strengths/infrastructure for e-commerce. The dotcom, in turn, could have accessed the ISP’s Internet customers.

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