EXHIBIT 10.2 IT SPACE.COM FRIDAY, SEPTEMBER 7 NEWS YOU ARE HERE: HOME -- NEWS -- RESEARCH CENTER -- ANALYSIS ---- ---- --------------- BROWSE CATEGORIES TRENDS ANALYSIS OUTLOOK PERSPECTIVE CONFERENCES NEWSMAKERS ANALYSIS 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 against Resources 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) 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. Other ISPs in Table 1 include Dishnet, NOW, BSES, o Telecom, BPL Net etc. ---------------------------------------------------------------- APRIL 2001 (C)ITSPACE.COM ITSRCOMPAPR01AO45 ABOUT US / ADVERTISE WITH US / CONTRIBUTE AN ARTICLE / LETTERS TO THE EDITOR / FEEDBACK / RECOMMEND THIS SITE / TO THE MICROLAND GROUP This site is best experienced with Internet Explorer 4.0 and above, at default browser settings 800x600 pixels (C)2001 ITspace.com. All Rights Reserved