They are also willing to bring Myanmar under their network, subject to approval of that nation.

The seven north-eastern states now get telecom services through VSAT (very small aperture terminal) at a high price.

The BTRC views the proposed network as an alternative to Bangladesh's lone submarine cable, but the Bangladesh government is yet to decide on the proposal.

'The link if developed by a local company between India's mainland and the seven sister states might work as an alternative network for us in case of disruptions to our lone submarine cable line,' the daily Star quoted a BTRC official.

'The Indian companies have already brought Pakistan, Nepal and Bhutan under their submarine cable network. If the proposal is implemented, we shall get connected with these countries and be benefited financially,' he said.

Internet service providers have welcomed the initiative and said there is no reason to hesitate over the proposal if the Indian companies give Bangladesh some benefits.

'If Bangladesh can get connected with the US, there should be no problem with the seven sister states,' said Akhtaruzzaman Manju, president of Internet Service Providers Association, Bangladesh.

RCom, which has a high-capacity, integrated and convergent digital network, began laying 60,000-km of a pan-India fibre optic backbone in December 2002.

Airtel Telemedia, a Bharti Airtel subsidiary, offers broadband and telephone services in 95 cities and has recently launched direct-to-home service digital television service.