In an attempt to retain its marketshare in the Internet business, the Tata-owned Videsh Sanchar Nigam Ltd is embarking on a major overhaul of its infrastructure by launching a new messaging platform, enabling faster downloads and designing a single billing system.

The company expects the changes to become operational by mid-June. "We are implementing a system that will ensure downloads within a specific timeframe. It will also provide new messaging features and e-mail services similar to those offered by Yahoo! or Hotmail," said Prateek Pashine, head of retail business, VSNL.

Pashine said he was confident that the shift to the new system would be completed by next month. Analysts point out that VSNL is facing stiff competition from basic service providers like Mahanagar Telephone Nigam Ltd and Bharat Sanchar Nigam Ltd, which offer direct Internet connectivity to their subscribers, obviating the need to purchase a prepaid card.

Last week, VSNL's subscribers had to face technical snags as the company was forced to route its international calls to Europe and the UK through FLAG's submarine cable instead of SEA-ME-WE 3's under-sea cable, which snapped due to the earthquake in Algeria.

Sources close to the company, however, denied any significant increase in the number of faults due to this and said the cable had been repaired within "a record two days".

According to Pashine, technical faults, which have been happening ever since the Internet business started, include problems with the network and exchange, cable cut, or problems in billing and messaging.

"There has been no increase in faults. In fact, the changes we are undertaking will further reduce the fault rate," said Pashine.

Pashine, however, said VSNL was facing problems in making its services available to its customers.

"Our connections are available off the shelf in 3,000 retail outlets from January 1. Now subscribers need not go only to a VSNL centre to buy an Internet package," he said.

VSNL, which currently has 700,000 Internet subscribers, is also tying up with ATM service providers like ICICI to enhance payment services.

As part of its new billing plan, VSNL's Internet users can make use of a number of services, including Net telephony, without having to pay separately. The amount will be automatically deducted from their prepaid Internet package.