Company plans to increase bandwidth capacity to 75 mbps by April
Southern Online to up bandwidth capacity
K BALARAM REDDY
Hyderabad, 21 April
City based Southern Online Bio Technologies
limited, formerly Southern Online Services Limited, is planning
to increase its bandwidth capacity from the existing 44 mega
bytes per second (mbps) to 75 mbps by April 2005. The company
is the largest B-category internet service provider (ISP) in
the country.Of the 44 mbps capacity, the company sources 2 mbps
from Dishnet DSL,4 mbps from VSNL and 38 mbps from Bharti BT."The
company sees huge untapped potential for selling additional
bandwidth in Hyderabad city itself. At present, negotiations
are on with bandwidth providers," N Satish Kumar, managing
director of Southern Online Bio Technologies, told Business
Standard. The company offers
dial-up connections, Leased lines, wireless hosting and cable
services in three cities in the state -- Hyderabad, Karimnagar
Satish Kumar said that the significant
fall in bandwidth prices from Rs. 42 lakh per mbps in 1999 to
Rs 12 lakh currently was helping ISPs attract new customers.
He said the company was mainly focusing on the corporate segment
which comprised 80 per cent of the total customer base.
Southern Online Services limited recently
announced plans to enter the biotechnology segment by acquiring
a company Southern Biofe Bio Fuels Private Limited. It held
an extraordinary general meeting of shareholders on March 25,
which approved of the change of name from Southern Online Services
limited to Southern Bio Technologies Limited.
The EGM had approved of the proposal
to raise authorized capital from Rs 6 crore to Rs 12 crore.
The company has sought approval from Sebi for rights issue to
allot 62,96,603 equity shares of Rs 10 each in the ratio of
1:1 to the shareholders. Of these shares, 3,43,097 equity shares
will be issued to the shareholders of Southern Biofe Bio fuels
in exchange for purchase of shares of Southern Biofe Bio fuels.
Southern Bio plans to set up a biodiesel
plant Samsthan Narayanpur in Nalgonda district. The plant will
procure oil-bearing seeds such as Pongamia Pinnata, Jatropha
Curcas etc by entering into buyback arrangements with farmers
The bio-diesel project is estimated to
cost Rs 14.84 crore. About Rs 6 crore is being mopped up through
internal accruals and the remaining Rs 9 crore is yet to be
mobilised either through debt or equity, Sathish Kumar said.
bio-diesel plant project is being appraised by German Technical
Cooperation (GTZ) , a financial institution. The technology
producing biodiesel is to be sourced from LURGI of Germany,
a leader in biotechnology, Sathish Kumar said. The company is
currently holding talks with International Finance Corporation
(IFC) and a few venture capital funds in Germany, he added.