State-owned telecom, Mahanagar Telephone Nigam Ltd (MTNL) Delhi, has announced the launch of its IPTV-competent broadband with Wireless Fidelity (Wi-Fi), with a maximum speed of 2 Mbps. MTNL Delhi will also be launching the Wi-Max system, which is already functioning on a trial basis in some government offices.

MTNL will sell two types of modems for the new Wi-Fi system: one with one USB and one Ethernet port and the other with four Ethernet ports, bought from HT Star. It will also offer the normal LAN facility. Users may purchase pre-paid cards for the usage, available in various price ranges. The registration charge is Rs 500, security deposit Rs 800 and installing and testing charges are Rs 300. The monthly rental is Rs 150. Users may also access the service by dialing 1500 or 22221500.

A. K. Arora, Executive Director, MTNL revealed that users will have to pay a security deposit and the cost of the modem, while MTNL will not charge its customers for setting-up the system. He added that the system has the capability of offering the Wi-Fi service to multiple users working with their computers or laptops within 40 meters of the modem inside a house or restaurant. In open space, with less physical intrusions, users can work within 60 meters.

Arora also said that there are at least 1.3 lakh private hot spots across the world, whereas in India, there are just a thousand. Now, with the government’s announcement, that 2007 is the officially the year of the broadband, MTNL decided to launch the service from February 8. The services are accessible from the Sanchar Haats, set up within two days of the purchase made. He said that the system has already been tried at the domestic airport, Pragati Maidan, India Habitat Center, Union Public Service Commission office, Indian Institute of Planning and Administration and many offices of the Delhi government.

He said that setting up public hot spots will hugely help businesses, convention centres, engineering, management and medical institutions, and also private homes.

MTNL’s broadband Wi-Fi modem works on the latest version of 802.11g of Wi-Fi standard and functions on the unlicensed 2.4 GHz band. It will offer a bandwidth of 54 mbps, with up to 30 concurrent users in the system. Arora predicts there will be 90 lakh broadband users by 2007, of which MTNL will have to give 50 lakh connections.

Arora also announced the launch of MTNL's CDMA mobiles, making the state owned telecom, the only service provider to operate both CDMA and GSM services.

The MTNL CDMA handset is a Huwai C 300, priced at Rs 1,499 paid upfront (VAT extra), with Rs 1,499 free talk time in local network, (CDMA, GSM and landline) as well, for one year. MTNL is also giving Rs 25 worth talk time free to other networks, for one week. The pulse will be calculated per 15 seconds and the rate, Arora said, would be Rs 0.10 for a pulse for local calls. The STD charges would be Rs 2.40 per pulse.