VSNL’s Marketshare Declines In ISP Business As People Prefer Broadband Connections

Business Standard: When every major ISP is gaining, VSNL is losing its market share. It has lost 8.31% of its subscribers for the quarter ended December 2005, and subsequently its marketshare has dropped to 6.97 per cent. In fact, it’s a gradual decline. Its subscriber base fell by 20.56 per cent for the quarter ended September 2005 and 9 per cent for June 2005. In the quarter ended March 2005, it declined by a 24 per cent.
However, the other top ISPs including BSNL, MTNL, Sify, Reliance and Bharti have grown. These service providers have registered 14.80 per cent, 8.80 per cent, 2.51 per cent, 9.8 per cent and 62.34 per cent growth respectively, for the quarter ended December 2005. Apparently, VSNL’s declining subscriber base is a result of customers moving from dial-ups to broadband connections.

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