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The ISP scene: Innovate and survive

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CIOL Bureau
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Circa 1995: VSNL launches its services in August 1995 and is the lone player.

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Circa 2000: Post ISP deregulation, the DoT has issued licenses to nearly 200 players with 50 active players offering their services across the country.

Although VSNL started its services in August 1995, it took some time for the private players to commence their operations. Further, the IT task force recommendation tabled and accepted by the government in toto during mid-1998 brought hope to the ISP industry. Yet it was only in November 1998 that the government announced its ISP policy and made private ISP a reality.

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Following the deregulation of ISP, within a year, 50 players have already jumped in to provide their services. Their optimism confirms their faith in the vast market potential of this segment.

Before figuring out what models ISP players have been trying to innovate or follow in India, it would be worthwhile to examine how global ISPs have developed peculiar models depending on the nature of service, the segment and value addition provided.

Also, the definition of ISPs have changed globally. It is no longer restricted to only access providers but has extended to other players not involved in providing access. So, classifying an ISP on the basis of its size and geographical coverage will not render the real picture of the dynamic business model the particular ISP would have adopted.

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