The entry of public sector giants Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) with their huge landline subscriber bases into the 256kbps broadband internet access market with aggressive tariff plans has spurred the private sector access providers to match the pace of the behemoths. (See: BSNL hits the broadband highway)
Responding to the challenge, the Bharti group has brought down its broadband service rates while increasing the access speed.
The new development is expected to impact the cable internet access providers whose growth has come at the expense of dial-up access offered by the telcos. Moreover, cable internet access providers are present only in small pockets.
But Jayant R Changrani, vice president, Networks and ISP, and head of commercial operations, Hathway Cable and Datacom Private Limited is unperturbed.
"Hathway Cable provides high quality video (cable TV) and data services through its network. The net access speed ranges from 128kbps to 30mbps. The company also provides internet telephony. With the launch of digital cable TV services, Hathway Cable is ideally suited to provide triple-play services to its subscribers. Our USP is our value proposition of broadband services with digital video."
An electronics engineer with 16 years of industry experience Changrani is responsible for new product / services development and technology initiatives. Prior to joining Hathway Cable, he was the head of business, Enterprise Networks, with GTL Limited.
What is the broadband internet access market size and how has its growth been?
The market in India is still at an early and growing stage for broadband internet services. According to the latest figures from the Telecom Regulatory Authority of India (TRAI), India only has 0.02 broadband connections per 100 population. South Korea, for instance, has 25 broadband connections per 100. The growth of the broadband market will depend mainly on TRAI's recommendations on issues like international bandwidth prices and home PC penetration. Also according to TRAI's report for 2004, broadband connections have grown at 28 cent over the previous quarter, totaling about the 1.90 lakh connections.
All over the world, broadband has leaped ahead of dial up access connections. By July 2004, 63 million people were using broadband at home, which is 51 per cent of the total US internet population, up from 38 per cent the previous year - accounting for a 47 per cent jump of broadband users in America. Growth in the cable internet market has come at the expense of dial up connections throughout the world. Today the dial up internet is history.
Broadband access is calling the shots in the country. Home users have tasted speed and are clamouring for more. Just a year back, internet service providers in India had to do a lot of concept selling with consumers when it came to "always on connections". The boom in the broadband sector should be credited to the ISPs who have had to doggedly explain to the consumers the benefits of broadband over dial up.
Which broadband access mode, in your view will see further growth in India - cable, digital subscriber line (DSL) or wireless?
In India cable and DSL would go long way
How does the government's definition of broadband speeds as being between 256 kbps and above impact you prospects since you offer connectivity at various speeds starting from 64 kbps?
Hathway Cable can cater to speed requirements from 64kbos to several mbps with no limitation of distance between the subscriber's premises and our network centres.
Do you foresee a further reduction in tariff by cable internet service providers? The rates have been coming down in recent times.
Our endeavor has been always to offer the best at an affordable price.
What is Hathway Cable's subscriber base in the cities it offers cable net access?
The user base would definitely be over 1.5 lakh and the subscriber base would be approximately 40,000. The break up of our subscriber base is 20 per cent corporate, 25 per cent small and medium enterprises, 45 per cent homes and 10 per cent hotels, educational institutions and others
Earlier modem rentals used to be a revenue stream. But today with modems being given free what is the impact on your top line?
Rentals have never been a revenue stream, as they would not even offset the processing or finance cost. Currently, Hathway Cable has taken the initiative of offering modems on deposit with zero rentals as a promotional scheme for a limited time, which had a great response. Hathway Cable has always been the benchmark in providing the best experience at an affordable price.
What is your bandwidth requirement and from whom do you source it?
We require the STM4, which we currently source from all major carriers.
One of the issues with cable internet is that the players are present only in a few cities and that, too, in small pockets. This is equally true of Hathway Cable. How do you plan to expand into newer cities or grow intra city where you are currently present?
Our services are available across eight cities - Mumbai, Delhi, Chennai, Hyderabad, Bangalore, Nashik, Pune, and Ludhiana. We are currently evaluating a few more cities with strong PC penetration.
