The initial entrepreneurial interest in setting up ISP services, which sawthe emergence of 170 licence-holders appears to have died down. Only about30 of these have made attempts to start operations. What the whole episodebrings out is that the licence-quota mentality is far from dead in thecountry. A huge majority of the applicants appear to have bid for licenceswithout actually having any serious intentions of ever starting operations.This apart, part of the reason for this could have been the lack offollow-up action by the government.Yet, the ones that did start operations have changed the industry scenarioaltogether. Although competition is far from fair as VSNL is the sole ownerof Internet gateways to the country, the entry of private players has madeInternet services more affordable. Consumers have benefited from the choicein price slabs and additional value-added services. Each of the three `A'category players, offering services nation-wide have been devising ways andmeans not only to acquire new customers but to retain existing ones, too.This is what the consumer could have asked for.
However, the net has still been eluding the vast majority of the populationand although Internet services have become more affordable, they are stillperceived as expensive by most PC-owners, not to mention the abysmally lowPC ownership in the country. But then the proliferation of the net is knownto drive PC demand and service-providers in the US are known to offer freePCs with net connections. There is no reason why such a scenario cannot bereplicated in India provided the government really creates a level-playingfield in the industry. If it shies away from allowing the entry of privategateways, the whole purpose of its ISP policy will be defeated.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.