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Raja Simhan T.E.

... keeps Sify ahead in the fray. Its chain of cyber cafes or iWays is brewing success not only in the major cities but also smaller towns. The company is currently adding three cafes a day to its network.

A DECADE ago, Indians knew very little about cyber cafés. There were barely a handful of cyber cafes in a few major cities, and they would charge Rs 75 to Rs 100 for an hour's Internet browsing. Visitors used the café mainly to send and receive e-mails. But things have changed in the last five years. The number of cyber cafes suddenly spurted, even as Internet usage, both for personal and business needs, proliferated globally. Writing letters became old fashioned as e-mail ruled — the pen gave way to the mouse. A wave of small-time entrepreneurs invested a few thousand rupees in a couple of personal computers and a telephone dial-up Internet connection; they made a quick buck, charging Rs 30 to Rs 40 for an hour's browsing.

Today, however, it is a different scene altogether. Several big companies have entered the fray, whisking away the market from the small entrepreneurs. One such biggie is the Chennai-based Sify Ltd, an Internet, premier Internet, network and eCommerce services company.

Starting with four iWays — Sify's cyber café brand — in Bangalore and Chennai as pilot projects in early-2000, the company currently has over 2,000 iWays across 67 cities. And it is adding three a day, says Shrikant P. Joshi, President, Access Media, Sify.

iWays would increasingly be found even in places such as Siliguri, Ajmer and Ranchi, and not just the metros and mini-metros, he says. It has been a slow but steady progress for Sify, which opened 40 cyber cafes in Delhi in September 2000, and expanded to Delhi, Mumbai, Bangalore, Chennai and Hyderabad before the end of the year. By end-2001, there were 600-plus iWays spread across 12 cities. In 2002, Sify migrated from ISDN (integrated services digital network) lines to wireless broadband at all its iWays, which had touched 750 by the year-end. Sify owns 36 iWays, and the rest are run by franchisees, some of whom are retired government officials, bankers, professors, lawyers and even grocers. "Sify today has the largest franchisee operations in the country," says Joshi.

The iWays network boasts of nearly 18,000 PCs accessed by about 6.5 lakh users. Revenue from the iWays accounted for 23 per cent of Sify's Rs 77.8 crore earnings in the quarter ended June 30, 2004.

Cyber cafes have contributed significantly to the growth of Internet usage in India. While there are about 4 million Internet subscribers in the country, the number of Internet users is over 12 million. The rising number of cyber cafes has also brought down the cost of browsing, which is less than Rs 20 an hour, says Joshi. Explaining the success of iWays, Joshi says Sify has specifications for the size, connectivity, equipment configuration, interiors, exteriors, branding and colours. Each outlet has about 6-10 PCs in custom-designed modules in a bright, cheerful, air-conditioned environment. The idea is to establish iWays within walking distance (1 to 2 km) of every good residential or business area across the country.

Users can buy prepaid accounts entitling them to specific hours of usage, at conveniently located iWays. The account can be used at any iWays across the country, he says.

Today, cyber cafes offer several value added services. For instance, consumers can make calls to the US and 149 other countries at low rates. Further, as many as 100 iWays offer video conferencing for Rs 5 a minute at both ends. Calls over Way2Talk, Sify's Net telephony service, have crossed 2 million minutes a month, says Joshi.

Video conferencing is rapidly gaining acceptance among consumers, professionals, as well as company executives. The business community, especially small and medium-size companies, use video conferencing for interviews, sales meetings and important discussions.

Recently, Sify teamed up with the Indian Institute of Banking to conduct their professional examination online. Over 70,000 bank officers took the exam from about 400 iWays located in 25 cities across the country, saving on time, travel and cost.

raja@thehindu.co.in

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