Synopsis
Despite the considerable popularity of Internet in India, the ISP market has been in disarray. There were around 150 operational ISPs in the country, after a period of market rationalisation, but, despite the large number of providers, 10% of the ISPs have 90% of the subscribers. In fact, 5% have 85%. The state-owned – BSNL and MTNL – dominate the market, holding first and second place in terms of Internet subscribers. Cybercafés have certainly been playing a major role in fuelling Internet development in India. About 30% of the total Internet subscriber base has broadband access. Despite this relatively high proportion, development of broadband Internet in India has been particularly slow. This report also takes a look at the wider Internet and e-services market as the country moves slowly towards the New Internet Economy.