Players in Command
Incumbents BSNL and MTNL control over 64% of the market while none of the over hundred competitors controls even 10%. However, with their uninhibited access to copper lines, the PSUs can achieve much more. Their combined subscriber base of 6 mn Internet subscribers, and 1.5 mn subscribers.

Market leader BSNL has added almost 500,000 broadband subscribers during FY 07 covering a total of 900 cities. It has plans of reaching up to 1,700 cities and 20,000 villages with broadband connectivity by the end of March 2008. In order to achieve its objectives, it is leveraging next generation networks (NGN) for broadband. BSNLs dial-up subscriber base is estimated to be around 3.3 mn with total additions of 1 mn, mostly from smaller towns. As part of its rural connectivity roadmap, BSNL plans to provide hi-speed (<256 kbps) Internet connectivity to 6,000 blocks of which 1,000 blocks will be covered using WiMax. BSNL plans to add 5 mn new connection in this financial year.

MTNL has a subscriber base of about 475,000 for its broadband services. Of this, about 249,000 subscribers are in Mumbai, while Delhi accounts for the rest 226,000. MTNL has a target of 1 mn new connections in the current fiscal.

Sify has garnered revenues of Rs 420 crore in the last four quarters from dial-up, leased lines and other Internet services, a growth of 13%. This is despite showing a dip of 8% in the overall subscriber base. Sifys dial-up subscriber base dropped 40% from 136,331 to 81,670. The public access through iWay chain of cyber outlets has dropped by 9.2%, falling to 519,466 by end FY 07. However, as a counter measure to stay competitive, Sify has been able to rope in cable operators to help it scale up broadband across the country. As of March 2007, Sify touched 53,195 broadband subscribers, adding 12,752 broadband subscribers during FY 07. Apart from this Sify is also serving 162,311 high speed subscribers.

Adding around 600,000 subscribers at the end of March 2007, Airtels broadband subscriber base has grown by over 270%. Broadband and wireline services revenue is up by 50%, and contributes 12% to the companys total revenues.

VSNL has taken the lead in offering innovative wireless broadband services with the launch of WiMax services in February 2007. It has registered around 180,000 broadband subscribers of which 40% come from small enterprises. To beef up its domestic broadband base, VSNL has bought Direct Internet and its Primus India subsidiary for Rs 75 crore, and is reported to have picked up the Internet business of 7 Star, a cable operator based in Mumbai. In another first-of-its-kind move, VSNL was awarded franchisee rights for running cyber cafes at 68 railway stations across the country to create user-friendly public Internet access points for customers.

As per VOICE&DATA estimates the total Internet subscriber base of Reliance Communications as of March 2007 at 660,000 growing 60% over the previous fiscal. This includes wireless broadband data card customers, retail customers of Reliance Web Worlds as well as enterprise customers. There are over 360,000 wireless Internet customers on Reliance network. Currently Reliance Communications has over 488,600 buildings directly connected to its network, and over 620,000 access lines, covering 18 circles. The companys broadband business unit offers a wide portfolio of enterprise voice, data, video, Internet, and IT infrastructure services serving the enterprise segment.

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