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Net service: VSNL slips in ranking

Thomas K Thomas

Bharti, Reliance take spots in the top 5


VSNL could be embarking on an aggressive plan based on wireless technology to ramp up its user base.

New Delhi April 17 Videsh Sanchar Nigam Ltd has slipped to the number six slot in the Internet segment, with Bharti Airtel and Reliance Communications overtaking the Tata-managed company. While Bharat Sanchar Nigam Ltd, Mahanagar Telephone Nigam Ltd and Sify maintain their ranking as the top three Internet Service Providers, VSNL has lost its number four slot to the two private operators.

As per the quarterly performance indicator report compiled by the Telecom Regulatory Authority of India, VSNL's Internet user base has grown by only 1.3 per cent during the period September-December 2006, taking its total subscribers base to 4.57 lakh.

Aggressive Plan

In comparison, Bharti's Internet user base went up by 14 per cent and Reliance reported an increase of 22 per cent to take their total numbers to 5.97 lakh and 5.4 lakh respectively. BSNL and MTNL reported 7 per cent growth to take their subscriber base to 3.8 million and 1.6 million respectively.

Sify reported a 7-per cent dip in its subscriber base but continued to be at the number three slot with just over 8 lakh users. VSNL officials were not available for a comment, but industry sources said that the company could be embarking on an aggressive plan based on wireless technology to ramp up its user base.

In the June-September 2006 quarter, VSNL had reported a 4.3 per cent decline in its Internet user base.

Growth Trend

Sify had also seen a 4.8 per cent decline in its user base.

Analysts pointed out that large integrated telecom companies such as Bharti and BSNL had a better business model in the Internet space as they can bundle it with other telecom services.

Internet subscribers stood at 85.82 lakh for the quarter ended December 31, 2006, compared with 80.96 lakh during the preceding quarter registering an increase of 6 per cent.

More Stories on : Broadband | Market Shares | Satyam Computer Services Ltd | Bharti Tele-Ventures Ltd | Reliance Communications Ltd | Mahanagar Telephone Nigam Ltd

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