The Hindu Business Line : Rediff aims for big chunk of global e-mail user base

BY taking on the likes of Yahoo and Google by offering 1GB storage space to all e-mail users, Rediff.com hopes to snap up 60 per cent of all new e-mail users and increase revenues by 50-60 per cent through online advertisements.

Online portals offering free email services largely rake in revenues through the ancillary links in the site such as matchmaking and recruitment services coupled with banner ads.

``It must be understood that the e-mail service offered has direct correlation to the company's performance. Even though the service is free, the banner ads and the various links like match-making services that are connected to the e-mail site generate revenues," Mr Rohit Varma, Vice-President and Chief Marketing Officer, Rediff.com told Business Line.

He said most people logged on to the Internet for email services and then moved on to using paid services like match making or recruitment and finally transacted business online. This business dynamics prompted the Indian portal to enhance its storage space. Additionally Rediff would make available 15 million addresses for new users.

Currently, Rediff has 25 million users for its free e-mail service and five per cent of this base comprises subscribers (users of paid e-mail service). ``We are looking at capturing 60 per cent share of all new users who are likely to sign up for e-mail and the 1GB space is immediately available on sign-on and provided to existing users also. And given the low Internet penetration in India, the potential is really high," explained Mr Varma.

The 1GB storage space is an extension of Rediff's value-added service offerings such as the recent launching of a spam filter service and a user-friendly interface on its e-mail site. The portal plans to add new services over the coming months and mulls providing services akin to those of Google, wherein the latter has tied its search engine capability to the e-mail service. However, the new offerings will be based on the requirements of the Indian consumer.