Internets

alt="seg_internet.gif (6380 bytes)" align="left" hspace="4" vspace="4"> face="Times New Roman" size="2">Ten ISPs including VSNL operating in the country, a
subscriber base of 3,00,000 (estimated 50,000 non-VSNL), about 150 ISP licenses given
away–all on 31 May 1999, seven months after the ISP policy was announced on 6
November 1998. A new market, a new industry, a new communication medium, a new culture
took birth. And in the impending change, there is a lot of uncertainty. Uncertainty about
how things will shape up. But everybody is positive about one thing: that the Internet
will boom, that it will drive other markets like PCs, telecom, networking, even
infrastructure, that it will enable things like content creation, communication,
transparency and so on. Let us take a look at the entire shape of things to come.

Supply Side

On the supply side, there are
basically five kinds of organizations entering the ISP fray:

• The first kind is the service companies. After
  VSNL, it was MTNL, which entered into Internet service provision. Most of the cellular
  service, paging and private basic telecom operators have announced clear intentions to
  provide Internet services to their subscriber base.
• The second is the infrastructure outfits like
  IRCON, Punj Lloyd, HFCL, who have picked up the gauntlet. However, it is not known how
  they plan to offer Internet services.
• The third is the Value Added Network (VAN) service
  providers. Satyam Online, GlobalNet, Wipro Net, Crompton Greaves, Manipal Control Data,
  who want to leverage on their existing network services mettle to provide access services.
• Cable TV companies form the fourth category.
  Siticable, Hinduja’s IN, Asianet, Ortel are offering Internet services in small
  pockets of the major metros. The companies have the USP of having a strong client base and
  network.
• The last category is that of the innumerable local
  neighbourhood cable operators. This category will witness acquisitions on a local basis
  for cable services and Internet service provision.

Demand Side

Home is the magic word. For all
and sundry, it is homes which is the target market. With an installed base of nearly 5
lakh PCs in homes, this segment has become the apple of the industry’s eyes. V&D
estimates put home shipments in the year 2001-2002 at more than 1 million. It is a chicken
and egg situation. The issue is, will the Internet fuel the home market or the home market
fuel the Internet penetration?

One of the major drivers of the
home market is the availability of the Internet over cable. Although Siticable has started
offering access, cost is a major issue. An installed base of 66 million televisions in the
country is possibly the biggest market ever for the Internet through cable. Apart from
cost, availability of content is the other major issue. Last year portals like Rediff on
the Net started offering e-commerce type services, wherein a customer could buy books and
CDs on the Net.

E-commerce, as a concept, became
hot last year. Anybody and everybody in the industry were talking about the business
conducted over the Net. These will be not only the enablers of the Internet in the
country, but also the driver of the Net. For the corporate market, services enabling
business over the Net with their channel partners, suppliers, etc., will be the driver.

As past experience has taught us,
communication has brought about a cultural change in a population. But whatever medium, it
has been a one-way communication, be it radio, television or cable. The Internet will have
far greater impact, as this is the only medium, which enables interactive communication.