Mumbai-based distributor, Rashi Peripherals, is undertaking an initiative to make 10 IT hubs across India into WiFi access areas. It will start by making Nehru Place in New Delhi, one of the biggest IT marketplaces, a WiFi zone by the end of July 2005. The other locations will also be networked within the next quarter.

The company will invest approximately Rs 1 lakh for each of the installations. The wireless hardware and technology will be provided by its principal, Netgear International Inc. The distribution house is currently negotiating with Internet Service Providers (ISPs) to determine how the connectivity charges should be applied.

"We will provide the infrastructure, but the ISP will have to decide how the users will be charged," disclosed Rajesh Goenka, Divisional Head, Rashi Peripherals. 

While Rashi will provide post-sales support for the hardware, the daily maintenance will be managed by the ISP or a nodal agency. "This has not been decided yet," added Rajesh. The service provider will also address access and content security issues to ensure that user machines are not targeted by malicious programs or spam. 

For a distributor to get into the actual installation and integration is a departure from the regular mode of business. But Rashi has strategically decided to offer solutions in the networking. The company has demarcated its distribution business into three verticals: components, portables and networking. For the first two, the distribution does not have to offer any value added services to propel business. But it believes that networking is a different ball game altogether. 

"As a distributor for Netgear, we have to propagate the concept of wireless connectivity and the best way to do it is to set up WiFi zones in the IT channel districts. As more partners use the technology, they will become more comfortable in selling it," rationalized Rajesh. Also, users can also get a first hand experience of WiFi, which will ultimately boost demand.

Currently, networking contributes 6% of Rashi's overall business and Rajesh sees this contribution doubling within the next 24 months. Though Netgear offers support through its team of service engineers and a call center, Rashi is training its internal staff to provide the last-mile support in smaller cities, which are part of its 37-office network.

VINITA BHATIA
MUMBAI

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