From the media

ISP services are mushrooming faster than illegal hutments in Mumbai. Over the last couple of weeks RoltaNet and ETH Dishnet have launched Internet access services, and within the next month Nanda Netcom and BSES are expected to take off.

When we last tested ISP services (Which Internet Service?--TC, August 25, 1999), we found VSNL to be the best bet--MTNL, MantraOnline and SatyamOnline were the other ISPs in the race--but since December will see four new players setting up shop in almost as many weeks, how do you decide which one to pick? Every player claims big advantages, but how many are worth it, and what's the chaff that needs to be ignored? We did some basic checks on two services that have just been launched and spoke to the incoming ones.

How they stack up

RoltaNet, promoted by Rolta, has come in with a good set of offerings at decent prices. We tried out RoltaNet's starter pack and it is far better than everyone else's. Two CDs packed with well-chosen software and a multimedia tutorial, plus a printed user guide to set things up. RoltaNet's service was simple to set up, as promised by the company. Plus, Rolta has also come up with some good marketing spiel, offering free surfing till December 31, 1999; free surfing between 2 am to 5 am and a 50 percent discount between 8 pm to 8 am.

ETH Dishnet which launched its services last week is banking heavily on price to hook users. Their access packages are priced lower than any existing ISP. However, going by our experience with a 25-hour pack provided to us, the new ISP has a lot of tuning up to do. For instance, though the company promised online registration (the user installs a registration dialler from the CD, keys in the temporary user name and password, and simply dials in to get his preferred user name and set his new password) we couldn't do so despite repeated tries. After some calling and miles of explanations, ETH's customer care told us that online registrations were not possible in Mumbai and asked us to use an existing Net connection to register via the ETH website or give them the temporary user name, password and personal details so they could register us telephonically! Does ETH expect a new user to already have a Net connection? Initially, ETH Dishnet president S Ravindran insisted that online registration was functional, but then explained that it was because of "security reasons" that we couldn't register online. Whatever the problem, customers may not tolerate such hurdles in their Net experience.

Secondly, ETH does not offer roaming services. That means you cannot use your Mumbai account to access the Net in any other city. Most large ISPs in India offer this facility. Ravindran admitted that ETH did not offer the facility in Mumbai, and was working on it.

The software in ETH's CD was also outdated. For instance, the browser they offer is Internet Explorer 4.01, and this when IE 5 was launched months back.

Pfaff from the players?

All the players, with the notable exception of Nanda Netcom are also talking big numbers--nothing less than tens of thousands of expected users. Suchit Nanda, CEO of Nanda Netcom feels everyone is "talking vague figures which are unlikely to happen." He himself is looking at a few thousand subscribers, and since he already has a dedicated user base of around 3,000-plus users for his LiveWire BBS, he feels this is realistic. Nanda Netcom plans to offer pricing that will be among the lowest in the market, and will also offer other value-added services (for instance, bulk messaging for medium level companies) that large ISPs may be unwilling to offer.

Another expert felt that given VSNL and MTNL's financial might it will be extremely tough, if not foolhardy on the part of any private player to try undercutting the others with huge discounts. Anyone who cuts prices may not survive for too long--remember the PCL PC saga where PCL, the company that offered the cheapest prices had to finally shut shop. Also, as Nanda points out, VSNL has improved services and infrastructure vastly. "The perception that private players would provide superb services has turned out to be false," says an expert. "They may be better in start-up kits and marketing, but VSNL beats everyone else in the actual service."

If anything, the long queues at VSNL's offices for new accounts and renewals justifies that statement. Even Vijay Bhatkar, chairman of ETH Dishnet who says there will be a shakeout in the ISP market is sure that VSNL and MTNL will survive. He expects ETH Dishnet to be among the few other players who survive. A feeling that's echoed by every ISP chief.

The plain reality is that customers want one thing over everything else: excellent service. VSNL has proved it has the will and the ambition to remain on top by improving services. If the others too make excellence their mainstay, and don't just depend on flashy schemes with low prices, customers will come in, remain loyal and help them survive and grow.