With a focus on strengthening enterprise segment offerings, YOU Telecom acquired Gujarat-based IceNet in an undisclosed cash deal in April 2007. It has invested over Rs 4,000 crore in infrastructure, and is currently focusing on providing unique services. The company has also applied for an overseas license for VoIP. It expects to grow its VoIP subscriber base from 1,000 currently to 40,000 by end of March 2008. Its revenue for FY 07 is pegged at Rs 80 crore.

The Way Forward
Overall, the industry is optimistic and raring to go forward on the objectives set for 2010: that of achieving an Internet user target of 40 mn, and broadband, 20 mn.

The emphasis is on improving quality of service and providing good connectivity, as access rates more or less remain the same from all ISPs.

While enterprise product offerings will continue to largely drive revenue, the business models of ISPs can expect to evolve further. Stand-alone ISPs will have to transform into being close to a teleco, offering a wide ambit of services, while large telcos will have to focus on their ISP role to cater to individual customers heavily. Either way the consumer will win.

In order to imitate the success of mobile telecom operators, regulations must allow independent players to thrive, and add more innovative services like IPTV. ISP players are of the opinion that opening up the license regime rather than dividing it into national- and state-based license will only hamper the reach of broadband.

Malovika Rao
malovikar@cybermedia.co.in

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