HCL Info seeks rural traction for its PCs

HCL Infosystems, the hardware and system integration services provider, is eyeing Bharat Sanchar Nigam Ltd’s (BSNL) broadband penetration drive in the rural areas to sell its personal computers.

HCL Infosystems and BSNL would take advantage of the government’s universal service obligation (USO) fund to sell subsidised PCs with broadband connectivity in the rural areas.

Under the tie-up, the customers would pay Rs 2,250 upfront followed by Rs 300 per month for the PC, and a broadband package of Rs 99 or Rs150 per month.
The companies would get a subsidy from the USO fund, which has been set up by the government to fund telecom services in rural areas.

Along with BSNL, HCL Infosystems is partnering with Intel and Microsoft to create strategies to market the PCs. “BSNL is not going to sell the devices on their own. HCL along with the partners Intel and Microsoft is involved in creating a strategy to succeed. We are initially going to existing customers of BSNL,” Ajai Chowdhry, chairman and co-founder of HCL Infosystems, told DNA.

HCL Infosystems is looking at a volumes play from the tie-up.

“We will make money by selling in volumes. But our vision is to create a rural PC-cum-broadband market. The USO fund provides Rs 4,000 to us and BSNL as subsidy on each PC and broadband connection. This is the first time the industry has come together with the government to work on the digital divide,” Chowdhry said.

Referring to earlier efforts by other PC makers who tied up with telcos, he said, “This is a full function PC unlike Novatium which is a thin client that needs a backend server.” In 2007 BSNL tied up with a Delhi based firm Novatium to sell an internet based PC with connectivity at sub Rs 4,000 price. The private telecom firm RCom had also joined hands with laptop makers to provide laptops with connectivity.