Satyam Infoway in aggressive Net pricing
biz.yahoo.com
Wednesday May 3, 11:41 am Eastern Time
UPDATE 2-India's Satyam Infoway in
aggressive Net pricing
(Changes dateline, adds CEO's interview, analysts comments)
By Anurag Sood
BOMBAY, May 3 (Reuters) - India's largest private Internet Service Provider (ISP), Satyam Infoway
Ltd (NasdaqNM:SIFY - news), on Wednesday launched an unlimited Internet access with an aggressive
pricing strategy that challenged rivals.
Analysts said the move will help the company to increase its market share.
``There is a customer acquisition strategy going on,'' Pradeep Kar, Internet expert and group chairman
of Bangalore-based Microland group, told Reuters.
The firm, a subsidiary of Indian software services firm Satyam Computer Services Ltd , has over
151,000 subscribers, out of a total of 468,000 subscribers served by private ISPs, spread over 41
cities across India.
But the market leader in India is state-run international phone carrier Videsh Sanchar Nigam Ltd with
343,000 subscribers.
Satyam's domestic pack for home users, for 299 rupees ($6.85) per month, offers unlimited access for
12 months from the date of registration and is bundled with five user identities and four e-mail
identities, the Nasdaq-listed Satyam said in a statement.
The commercial pack costs 1,499 rupees ($34.34) per month, and also offers unlimited usage for 12
months from the date of registration.
India's state-run Mahanagar Telephone Nigam Ltd has an unlimited Internet access service that costs
6,000 rupees for 12 months. Zeenext.com, an affiliate of Zee Telefilms , offers unlimited access at 499
rupees per month.
Satyam shrugs aside competition from free Internet access providers, and sees these firms will not
survive in the Indian Internet world.
``Free means there has to be an alternative revenue. In the U.K. the alternative revenue comes from the
telephone company; in the U.S. it has come because of the mature advertising and e-commerce. We
have neither of them,'' R. Ramaraj, managing director and chief executive officer, told Reuters in an
interview on Wednesday.
Analysts attribute the launch of a free Internet service - Caltiger.com - as one of the many factors
affecting company's stock in the last few weeks.
The company's stock on the Nasdaq was down $3\04 on Wednesday at $35\11. This is almost 69
percent off its year's high of $113.
Ramaraj also ruled out expansion of the company's Internet access services to subscribers outside
India.
``There is enough challenge here in India, though we are number one here in the private space, but I
think those numbers are still small. We would like to rapidly grow those numbers.''
The company runs a portal, satyamonline.com and offers services in areas such as travel, finance,
health, shopping, e-mail and chat.
Satyam Infoway also operates an extensive backbone network for corporations and provides network
and technology services and business-to-business services to over 450 firms.
($1 equals 43.65 rupees) |
