MEMORANDUM OF UNDERSTANDING BETWEEN
IUNET INC(USA) AND DEPARTMENT OF TELECOMMUNICATIONS, GOVERNMENT OF INDIA
1. BACKGROUND ON SANKHYA VAHINI
On September 5, 1998, the Information Technology
Task Force, Government of India concurred in pursuing the proposal of establishing High
Speed National Data Network operating in the range of 2.5 to 10 GPS (OC 48 to OC 192) and
to connect it to International University Network being established by CMU Pittsburgh USA.
Proposal is code named "SANKHYA VAHINI".
The SANKHYA VAHINI Network will be a High Speed Data
Network which will connect institutes, private and public corporations, organizations and
individuals requiring high data rates for learning, training, research, and other
multi-media activities. SANKHYA VAHINI will also provide a test bed for research in
developing and proving multi-gigabit technologies that will soon become the norm
throughout the world in the next decade.
BACKGROUND ON IUNet INC
IUNet Inc. was set up by Carnegie Mellon University
("CMU") a leading educational institution based in Pittsburgh, USA with a
charger to design, develop and manage a high technology, high speed data network
internationally to primarily promote educational services internationally. The program
will also access educational content from other leading US and global scientific
This document is
meant to serve as a Memorandum of Understanding between IUNet Inc. and Department of
Telecommunications, Government of India relating to the following:
OBJECTIVE OF THE MOU
A joint venture called Sankhya Vahini, India Ltd. Is
to be set up in India between IUNet Inc. (a leading technology provider in USA), and the
Department of Telecommunications, Government of India along with some selected educational
Institutes in India (the educational institutes presently identified being Indian
Institutes of Technology, at Delhi, Mumbai and Chennai, Indian Institute of Science,
Bangalore and Indian Institute of Information Technology, Hyderabad). The extent/amount of
equity contribution in cash/kind by each participating organization will be worked out
while developing the final proposal of the joint venture.
Sankhya Vahini, India Ltd. Will design a high speed
national data network to support bandwidth in the range of 2.5 Gbps to 10 Gbps, capable of
further upgrading, to stay at cutting edge of technology.
International connectivity for this high speed data
network shall be on lease from VSNL, India or can be negotiated with bandwidth providing
organizations subject to Government approvals for procurement as needed by Sankhya Vahini,
India Ltd. to meet the data requirement depending upon the quantum and speed of
information flow desired.
The above proposals will require laying of new
bundles of advance fibres wherever not available; enhancing the capacity of existing
fibres to larger bandwidths; multiplexing and aggregation to free requisite fibres
exclusively for the Backbone.
Sankhya Vahini India Ltd. Will assist in setting up
of a mechanism for educational institutions in India to create and make available the
necessary educational and training content to the network.
The proposed network will exclusively provide for
the flow of data only.
Implementation by DOT (India)
A team of 2/5 Members from DOT or from its Nominee
Company shall be fielded within a period of 3 weeks from the date of singing of MOU, to
work with IUNet Inc. designated team in Pittsburgh-USA, for preparing technical and
A Task Force will be set up by DOT, which shall also
have at least one Member from participating educational institutions to oversee and
examine technical/business plans for viability of the Project.
Professional expertise in the legal and financial
fields will be engaged, if found necessary, for preparing the Project Document.
The project will establish financial viability of
the proposed venture and time frame for breakeven cash flows. The project document will
compare the technology of SANKHYA VAHINI with that of other similar technology programs in
advanced countries to seek a leading position for India in high speed data networking.
Subject to technical and financial viability of the
Project, DOT would make best efforts to secure Government approvals for investment in this
After the grant of requisite approvals by the
Government, DOT would initiate steps for setting up the Joint Venture Company in India in
which participation of IUNet Inc. would be within the framework of existing policy
directives as approved by the Government.
Implementation by IUNet Inc (USA)
IUNet Inc. will identify its own team members and
duration for which they will exclusively work with the Government of India nominees for
the above project. Their names will be communicated to the DOT within 2 weeks of signing
During the course of approvals, IUNet will depute
personnel to India as necessary.
IUNet Inc. will participate with representatives
from DOT and other organizations in India in preparing technical and business plans.
IUNet Inc. will identify and communicate the names
of Members of its Task Force who will interact and contact the Members of the Task Force
in India, so as to define respective roles and oversee the implementation of preproject
Implementation General Clause
Till the Joint Venture Company (JVC) is formed, a
Joint Management Committee (JMC) consisting of Members of the Task Force on both sides
(2/5 representatives from each side) will be set up to oversee preparation of technical
and business plans and take other steps and decisions necessary to further the
Projects approval and setting up of the JVC.
Till the JVC is formed, the expenses incurred on the
work relating to the setting up of Sankhya Vahini, India Ltd., shall be borne by both the
parties individually without any prejudice to the final outcome of this exercise.
It will be the joint endeavour of the
representatives of IUNet Inc. and DOT on the JMC to proceed, and act in a time bound
manner so as to ensure that the JVC is set up as early as possible. After the JVC is set
up, all implementation and other decisions would be taken by the Board of Directors and
Sankhya Vahini, India Ltd. (including the decisions on future direction of the JVCs
business) within the policy framework of the Government of India.
(Sd) Shri Anil Kumar (Sd) Prof. Raj Reddy
Secretary, Department of Telecommunications
Chairman, IUNet Inc
Chairman, Telecom Commission Dean, School of
Government of India Carnegie Mellon University,
In the presence of H.E. Shri Naresh
Ambassador of India to the USA, Washington DC
October 16, 1998.