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 Home > ISP Watch > ISP Strategy: Moving Towards Corporates
  ISP WATCH
ISP Strategy: Moving Towards Corporates
Having burnt their fingers with end consumers, ISPs are now very aggressive on the corporate front. They are focusing more on corporate solutions and bandwidth leasing.
Pravin Prashant
Tuesday, September 04, 2001

Highlights
  • ISPs are now focusing on how to generate more revenue from corporates
  • ISPs, provide ISPs, solutions like leased line, ISDN, DSL, wireless and VPN for corporate customers

Internet Service Providers (ISPs) are shifting their focus from the end consumer to the corporate. The choice has been accidental but it is a good start for the ISPs to make money in the long run. Last year and till the first quarter of this year, ISPs had been slashing Internet access prices at regular intervals for end consumers and this has made a negative impact on their balance sheet. Earlier, ISPs had been charging Internet access prices far below the actual price of Rs 15 per hour as there was a mad rush to increase the number of subscribers in their network. They were also aiming to be the number one service provider in their respective area in terms of subscriber base.

Today, things have changed in the ISP sector. The Internet access prices, which were virtually free, have increased. With this change, there has been a change in the business model of the service providers and now there is focus on how to generate more revenue from corporates by providing them a whole host of services on the access, content, and value added front. To encash on this opportunity, the Bharti Group announced the restructuring of its Internet, VSAT and broadband operations into a single entity called the Bharti Broadband Networks Limited. The new entity will address the corporate market in a unified way by offering a menu of integrated solutions to enterprise customers.

According to Ashok Juneja, CEO, Bharti Broadband Networks Limited, "The new company will provide an integrated solution which will have a mix of satellite, fiber and VPN according to the corporate requirement. For e.g. large corporates which require large bandwidth can take the fiber route whereas smaller corporates can go for VSAT, VPN, DSL, leased line, 0ISDN, and dial-up."

ISPs Rating for Corporate Services
  Bharti Broadband Data Access Satyam Infoway
Access
Dial-up
ISDN
Leased line
Cable modem
DSL
Wireless Internet
Content Services
Text based content
Multimedia based content 
Value Added Services
Bandwidth provider
VPN
Co-location
Data center

With the merger, the new entity will have the advantage of providing bandwidth on demand by working in close association with Bharti Aquanet, the submarine cable player in the country and Bharti Telesonic, the bandwidth provider on the domestic front which will have presence in 300 cities in a couple of years’ time. Bharti Broadband will also provide DSL solution to the corporates through Bharti Telenet network, the basic service provider in the country. Wireless and cable access will be provided through the Mantra brand.

On the other hand, Data Access (India) Limited which started its operations in Delhi with a major brand awareness campaign, has shifted its focus towards corporates after making a national level presence in the country. This was done with the Bangalore launch of its ISP operations. The company is presently operational in Delhi, Mumbai, Chennai, and Bangalore which contributes around 75 percent of the total data communication need of the country.

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