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Regular-article-logo Thursday, 16 October 2025

NEW GROUND RULES FOR NET GAINS 

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BY ANIEK PAUL AND SUTANUKA GHOSAL Published 16.11.01, 12:00 AM
Calcutta, Nov. 16 :    Calcutta, Nov. 16:  The rules of the Net game are changing as it's shakeout time for Internet Service Providers (ISPs) in Calcutta. Nearly half of the dozen-odd ISPs in town have withdrawn service,while those who remain connected are chalking out restructure routes. . Free. ISP Caltiger is not free any more for nonmetro subscribers. Toprung players like Satyam Infoway (Sify), Wipro, HCL Infinet and BPL Innovision are scouting for strategic partners, shifting focus from retail to corporate, or eyeing the exit door. A recent IMRB study of ISPs indicates that .most players have invested so much in brand building and infrastructure that they are now struggling to meet essential costs of operation.. Forget the smaller players, even Wipro, which holds 49 per cent in Netkracker, is planning to divest. Chairman Azim Premji says a final decision will be taken .this quarter.. Wipro sources, however, said: .Businesses aimed at the retail segment have not gelled with our core operations, and we are looking at opportunities to exit the ISP sector..Wipro has already divested majority stake to ICICI Ventures, and withdrawn its brand name. Recently, BPL Innovision sold off its ISP business to Data Access, while Sify has said it could divest up to 52.55 per cent. HCL Infinet, the ISP wing of HCL, says it is open to strategic alliances. .HCL Infinet is in talks with a number of companies for technology and business development, but not for funds alone,. clarifies Saurav Adhikari, president, HCL Infinet. The company has so far invested Rs 60 crore in the business, and is bullish about the market but unwilling to buy out dying ISPs. Sify is, reportedly, finding it tough to divest stakes as none of the leading players has so far evinced interest. Industrywatchers feel the ongoing consolidation in the sector will help leading players secure greater market space. .Those who are likely to emerge stronger from the shakeout are Reliance, HCL Infinet and Bharti. At present, Reliance is operating on a low key, almost experimental basis. Once its broadband network is in place,Reliance's Only Smart will gain momentum,. they say. But ISPs across the board are focusing on corporate subscribers. Even relativelysmaller players like XPS Online say the corporate segment offers .better margins. than retail. .Selling dialup access hardly gives any margin, and hence we prefer corporate subscribers,. explains XPS Online chief executive officer Santosh Sarraf.HCL Infinet and Wipro, too, say they prefer corporate subscribers. . The retail ISP business in its current form is just not viable. It is high time the government intervened to save the sector by introducing revenue sharing models and reducing the cost of using the telecom backbone,. feels Ashok Juneja, CEO, Bharti Broadband. Despite the shift in focus,Juneja believes retail investors will benefit from the consolidation. .Subscribers will ultimately stand to benefit as the ISPs offering substandard service and compromising on quality will have to shape up or ship out.    
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