ISPs in India: Contrive to Survive

BANGLORE: "Survival of the fittest," goes the saying, making it
clear that survival is possible only if a player comes up with
innovative/creative ideas and services that are better than that of its
competitors. Competition has become a big issue these days and survival has
become difficult. The same applies to Internet Service Providers (ISP) in India
that are taking giant leaps to get ahead of their counterparts in the same
field. While one offers ERP on the Web, the other promises online education.
And, to beat everyone to the race, ISPs have also begun offering free Internet
access. Wonder what more can be given away to the customers in the name of
competition and exclusive services.

The subscriber base of Internet users in India is increasing exponentially
and according to a survey by IDC (India), the Internet subscriber base in India
is expected to cross the one million-mark by the end of year 2000 and 7.5
million by the end of 2003. The survey also says that, there were close to half
a million Internet subscribers at the end of 1999. Sometime back, the ISPs were
at each other's necks in the form of a price war. But, the focus now seems to
have shifted towards offering more innovative features and services. While, all
service providers in general target the home users, small office home offices
and corporates, their services and prices vary. Some ISPs leverage on the fact
that they were the first public or private service providers in the country
while the others claim that they had pioneered an idea or have exclusivity in
their service/feature or are much cheaper than the other service providers.

Some features that ISPs provide are instant access through digital lines,
single number access, 24-hour help desk, Internet through cable, ERP solutions,
cheaper tariffs, national roaming facility, licensed value added software like
eSafe, Dr. Millennium, Adobe Acrobat Reader, etc. As Bharti BT’s ISP division
Mantraonline regional sales manager K.V. Gopalakrishnan says, " We would be
offering mail solutions and other services like Internet through cable from the
next financial year. The ERP solution we offer is a unique service where the
client requires only a browser. It is an application based on the Internet and
so no specifics are required." Mantraonline also offers a GIE program,
which is a BT initiative, where e-commerce and other such activities, can be
carried out.

VSNL, the ISP giant in the country, offers global roaming covering 150
countries, free start-up with auto dialer, free roaming at VSNL nodes and free
multi-lingual word processor. Wipro Net Ltd. has launched an online learning
program for corporates, offering computer courses on the Net. The service will
host courses on corporate training on private and public campuses, with the
content offered by computer education provider, Aptech. According to Wipro Net
product manager Sunita Joseph, in public campus, any individual can become a
member and can access the courses on e-commerce and management. Ms Joseph added,
"In its unique role as campus manager, Wipro Net provides server management
around the clock, 24-hour helpdesk for students, allows companies to create a
private campus without the administrative bottlenecks. Online learning
eliminates the conventional barriers of time and space across geographical
boundaries." An official from Satyam Infoway also says, "Satyam
Infoway is the first private ISP and is presently in 34 cities. SatyamOnline
pioneered "off-the-shelf-ready-to-use" Internet connections, which
come in a convenient CD bundled with Rs 6,500 worth of licensed value added
software. We offer flexible use enabling better value for a night user to double
his hours at the same cost." Mr Gopalakrishnan highlights on the uniqueness
of Mantraonline and says, " We offer the four important Mantraonline
advantages which make our services different from others. Our pedigree (Bharti
Enterprises & British Telecom Venture), instant access through digital
lines, single number access and 24-hour Internet help desk."

Mantraonline also provides pre-paid and post-paid dial-up access services.
Pre-paid services are known as Flexi Mantra, which is available from 25
hours/75hours up to 500 hours. Post-paid service is known as Mantraease, which
allows a subscriber to use the services on a monthly basis, and the bill is also
raised on a monthly basis. Bharti Enterprises, the parent company of
Mantraonline, is offering India's first free Internet service - 'Mantrafreenet',
in Madhya Pradesh to its telephone subscribers. To beat all the above offers,
Calcutta-based national ISP, Caltiger.com has started offering free Internet
access and is also aiming to have the widest Internet network by December 2000
with a presence in over 100 cities in India, connected by almost 12,500
kilometers of optical fibre.

The government is also taking keen interest in promoting the Internet usage
in India. It is also expected that the Indian government would generally push
Internet adoption as a national policy. VSNL too has announced a series of
initiatives to boost the Internet sector in the country. It has reduced its
Internet tariffs, prices of its international private leased line, ISDN, etc.
Moreover, the Department of Telecommunications itself is expected to jump into
offering Net access in several smaller cities in a phased manner soon.

IDC (India) expects the Internet subscriber growth to be positively
influenced by the adoption of unlimited Internet access model (pay a fixed
amount for a period and use as much as you want during the period). A few ISPs
have already announced these packages, while a them are expected to adopt this
model by the end of 2000, by when, all major ISPs would be offering Internet
access in mass customized packages. The Indian market has already started moving
in this direction with Internet access currently available in a variety of
packages, which helps the consumer to choose what is suitable. By the first
quarter of 2001, most of the basic telecom service providers would start revenue
sharing with various ISPs. This is expected to push the overall cost of Internet
access downwards. Naturally, basic service providers also operating in the
Internet access domain would be the first to adopt this model, feels IDC.
Whatever way the ISP market moves in the months to come, it will to the
advantage of the consumer.