Bad News For Dial-ups: Tariff Cuts See 60% Of New Net Subscribers Signing Up For Broadband

Business Standard: If the introduction of broadband (256 kbps and above) earlier this year spelt trouble for dial-up Internet in the country, the recent round of tariff reductions for high speed Internet by major service providers may just mark the end of dial-ups.
While the tariff reductions are in place only from August, data complied by the Telecom Regulatory Authority of India (Trai) show that over 60 per cent of subscribers who went in for Internet connections during April-July, chose a broadband connection over dial-up. About 4,00,000 subscribers were added to the internet base during this period. From just under 50,000 broadband users in India at the beginning of 2005, the number risen to over 4,50,000 by July-end. Besides, the broadband sector has witnessed an average growth of 60 per cent over the last five months. The decline in dial-up subscriber base has resulted in Videsh Sanchar Nigam Ltd (VSNL),which was the largest Internet provider in India, losing 24 per cent market share during the quarter ended March 2005.

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