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RESEARCH CENTRE WILL SIFY OVERTAKE VSNL?
Did you know... Satyam Infoway seems to be inching towards
leadership in the dial-up access segment of the
Techreckoner ISP market, largely due to the first mover
advantage among private ISPs and also because of
Suggest Research its presence as a service provider in various
Internet businesses. ItspaceResearch estimates
Partner Programmes that at the end of Q3 FYOO, Sify has been able
to capture a market share of 33 percent, as
Resources against a share of 44 percent of VSNL in the
Indian Internet access market.
WE ATTRIBUTE SATYAM'S RISE TO THE TOP SLOT AMONG
PRIVATE ISPS TO THE FOLLOWING REASONS:
1. Satyam has been the forerunner in associating
with alternate channels including PC OEMs, IT
channels and traditional retail.
2. Satyam's presence as a leading portal and a
high brand recall has helped the company
garner critical consumer mind share.
3. Satyam is offering services in almost all
major cities in the country, and hence has
been able to tap the mobile users of Internet
services.
4. Satyam has also sponsored a chain of
Internet parlours across the country.
5. Satyam's presence in offering other services
such as B2B consultancy, VPNs and corporate
accounts have helped to improve its market
share.
6. Sify has constantly grown by almost 200
percent from June 2000 to January 2001, Sify,
which had about two lakh subscribers by June
2000, has expanded to the existing subscriber
base of four lakh. (Table 1)
ISP SUBSCRIBER BASE IN GROWTH RATE IN
LAKH PERCENT
VSNL 5.2 84
Sify 4.0 100
Mantra 1.3 260
Others* 1.5 100
Table 1: Growth Rate of leading ISPs in India
Source: ITspaceResearch Telecom Programs January 2001
ISPS CURRENT RATES (100
HRS)
VSNL 750
Sify 900
Dishnet 750
BPL Net 650 (80 hrs)
Mantra online 499 (75-150 hrs)
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Table 2: Current rates of Internet access
Source: ITspaceResearch Telecom Programs January 2001
ITSPACERESEARCH FORECAST:
o Sify looks like to be the only ISP with a
potential to beat VSNL, by the end of 2002, if it
continues at the same pace. The large cash
reserves of the company can help Sify to sustain
itself in this business.
o Other private ISPs also would enjoy the maximum in
the year 2001 by having a greater hold in the
market with interesting packages like the
Post-paid and Pre-paid schemes. Such a concept has
been already initiated by the ISP NOW, which sells
its CD at Rs. 199 and after the activation, bills
the customer on a monthly cycle. These schemes are
aimed at preventing the subscribers from switching
to another service provider.
o Most of the ISPs would also come out with free
Internet access during night hours like VSNL..
o For attracting more subscribers, other interesting
packages are expected to be offered by different
ISPs like BSES Telecom, which is about to announce
broadband services through its Powersurfer CD,
where subscribers will be eligible to get
discounts.
GLOSSARY:
o POTS - Plain Old Telephone Systems.
o Other ISPs in Table 1 include Dishnet, NOW, BSES,
Telecom, BPL Net etc.
APRIL 2001 (C)ITSPACE.COM
ITSRCOMPAPR01AO45
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