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Internet-Connectivity Provider

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PCQ Bureau
New Update


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Bandwidth prices are continuing to fall, making it more affordable for companies to go in for larger amounts of bandwidth, and to connect up more and more locations with something beyond dial up. Companies have multiple options to look at, from DSL to cable to leased lines.

No surprises on the ISP front, with VSNL continuing to rule the roost this year as well, and way ahead of runner up Satyam. Dishnet, MTNL and Tata Internet make up the rest of the Users’ Choice Club. We have kept VSNL and Tata Internet as separate entities as the integration of the two was still in progress during our survey. The ISP market is quite fragmented given the regional licenses that the players have. So, it is only common sense that the national players (MTNL with Mumbai and Delhi can be considered to be a national player) come out on top.

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Satyam seems to be enjoying a higher brand loyalty than VSNL. Amongst those who chose VSNL, 44% are satisfied with its performance, and have given this as the top reason for using VSNL. Satyam and Dishnet users also cite the same reason. So while there are some users wanting to switch preferences, it is obviously not an every day thing.

VSNL enjoys equal support from across all regions as well as from companies across the spend spectrum. The same goes for Satyam, but Dishnet got most votes from companies with lower IT spend (Rs 25 to 50 lakh). The companies’ espousal of DSL as against leased lines may be the reason for this.

Quality of service levels has been the big push in the bandwidth business. With dial up services becoming commoditised, ISP is turning to enterprise with a plethora of value-added options. Geographical reach is also a major concern for many, particularly the smaller ones.

In the coming year, will the integration of VSNL and Tata Internet make it stronger? Will the revived aggression of Dishnet or Satyam turn the tables? Will BSNL with its national reach improve its position? Will Reliance emerge as a leading player in this category? Surely,

there are some interesting times ahead for the ISPs!

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