LG Plans Long Distance Trip With Bharti Broadband

by Amit Tripathi    Jan 29, 2004

LG Electronics India has decided to discontinue using its VSAT network, opting for a Virtual Private Network (VPN) on Bharti’s national long-distance link instead.

Speaking to CXOtoday, Arindam Bose, CIO, LG Electronics India, said, “We are presently talking to Bharti for providing the bandwidth, to replace our present VSAT backbone.’

The company currently has 40 branches, 40 stocking centers and 60 RAO’s (Remote Area Office) across the country which are connected through a point-to-point VPN with VSAT back-up.

The challenges before the enterprise are two fold, as Bose explains, “To save exorbitant costs incurred on the VSAT-VPN and decrease latency in the connectivity process. And a broadband VPN is going to address just that.”

The RAO’s would now be connected through a point-to-point network over frame relay. All contact points except RAO’s would receive a higher bandwidth due to the initiative, with speeds that would be 20-30 % higher than that provided by a VSAT-VPN combination, at a significantly lower cost. The present drive would involve an expenditure of Rs 1 crore approximately.

As a part of its new drive of intelligently using IT, especially in cutting costs in business, LG had earlier moved to an instant messenger system that rode on its internal network.

Bose concluded, “Besides the VPN, there are other IT initiatives in the offing, which include a WLAN set up, an e-learning system, and an active workflow system, to name a few.”

Tags: LG