By Andrew Parker, Financial Times.

Sanjiv Ahuja, former head of France Telecom's Orange mobile phone businesses, has established a new company to supply broadband internet access in developing countries.

Augere is planning to launch its first consumerfocused broadband operations in Asia in October and then expand to Africa early next year.

The company has secured $125m of initial funding from France Telecom, France's leading telecoms company, and New Silk Route and Vedanta Capital, which are New York-based private equity and venture capital firms, respectively.

India-born Mr Ahuja is concentrating on developing countries with large populations that have little or no access to the internet.

Augere's first consumer-focused businesses are due to launch in Bangladesh and Pakistan by October. It is also looking at countries such as Indonesia, the Philippines and Nigeria.

Mr Ahuja, in his first interview since forming Augere, said the London-based company wanted to make broadband internet access available to 1bn people within five years.

Augere's business model rests on charging consumers $10 per month to connect their computers to the internet, which is a similar amount to what many households in emerging markets spend on mobile phone services.

Augere is using the wireless technology Wimax to provide broadband connections to homes and offices, because the fixed-line telecoms networks in developing countries can be poor quality or non-existent.

Mobile phone operators in emerging markets often offer only basic phone and text services, rather than broadband internet access.

Mr Ahuja, 52, will visit Bangladesh today to launch a trial of its broadband internet access services.

"The internet penetration in Bangladesh is less than 1 per cent of the population," he said. "Now in a country that has a population of 160m, it's a great economic opportunity. But it's also a great opportunity to try to make a social impact by providing easy access to the internet."

Mr Ahuja said Augere's country-specific businesses should break even at the level of earnings before interest, tax, depreciation and amortisation three years after launch. Five per cent of the pre-tax profit eventually generated by the businesses would be given to charities, he added.

After Bangladesh and Pakistan, Augere is planning to launch broadband operations in Rwanda and Uganda early next year.

Mr Ahuja is Augere's largest shareholder, with a 44 per cent stake. New Silk Route and Vedanta between them own 33 per cent, and France Telecom 22 per cent.

Comment

20.07.09
A great initiative to be applauded. What are the practical barriers in technology and what new shared business models will be required to lower costs further and extend appeal beyond urbanites into rural areas?

Posted By: Brendan Dunphy

20.07.09
plz lauch wimax quikly

Posted By: MAMUN

21.07.09
Providing internet @$10 per month is a pretty great deal. Hope augere launch its service in bangladesh asap. Eagerly waiting for wimax. All the best for Augere and Mr. Ahuja as well.

Posted By: Faisal Ahmed, (lettertofaisal@gmail.com)

21.07.09
Wel 10$ per pc is great.but what about the speed.is that like 128kbps .(Which is offered by banglalion in bangladesh).if that hapens it wil realy be suckable.!!!

Posted By: reza

09.01.10
Great initiative from Augere. It is important to offer products at affordable prices to consumers at various levels of economic and social development. This is a market often neglected by the big players.

Posted By: Murali