Trouble for Tata Tele, Reliance Communications as oil companies go for VSAT connection

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Indian oil marketing companies will use satellite internet connections for around 10,000 petrol pumps facilities like credit card machines, connecting to loyalty programme databases, and other inventory management applications.

The move will likely give a blow to Tata Teleservices and Reliance Communications, which offer over 3,000 already working connections on CDMA mobile technology.

"CDMA is cheaper but it is not continuous and requires the system to get a new IP (internet) address every time, which is not safe," said a person in charge, asking not to be named. Connection through satellite would entail a single internet address and can be secured more easily. "Plus the performance is patchy, we tried VSAT on some other pumps and it is much more reliable."

Bharat Petroleum, which is the consortium leader, is spearheading the move. Hindustan Petroleum and Indian Oil, the other two in the group, are jointly going to issue a tender for satellite connections for these petrol pumps soon, the person said. The connectivity contract is worth around Rs 100 crore annually.


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