Advertisment

Internets

author-image
VoicenData Bureau
New Update

Operational

ISPs (as of 30.5.99)

Bharti BT Internet
ETH Dishnet
Manipal Control Data
MKR On-line
MTNL
Ortel
Satyam Infoway
VSNL
Weikfield Mnemonix
Wilnet Communications
Advertisment

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:

Advertisment
  • 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.
National

Internet Backbone
The DoT has

taken the initiative to build the National Internet Bacbone (NIB)--a national network for

Internet nodes over the length and breadth of the country and to provide connectivity to

ISPs. Under this initiative the department and authorised ISPs will open Internet access

nodes at all district headquarters and local charging of the service should begin by 26

January, 2000. NIB will have a three-tier architecture to cover the entire area.

size="2" face="Arial">Phase I of the NIB initiative will cover Type A and B stations and

is expected to be operational by September 1999. The cost of this phase is estimated at Rs

85 crore. Phase II will cover Type C stations, and is expected be commissioned by December

1999, at a cost of Rs 225 crore. The rate of connectivity to NIB by private ISPs are at

64kbps, n*64mbps, 2 mbps and n*2mbps.

Challenges for the

Internet
  • Opening of International Gateways
  • Leased line costs
  • Impact of Government policy regarding ISPs
  • Opening of National long distance telephony
  • Utilization of the infrastructure of the Railways, Power

    Grid Corp., etc.
  • National Internet Backbone (NIB)
  • Integration of various technologies–satellite,

    landline, wireless, cellular, paging, etc.

Demand Side

Advertisment

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.

Advertisment