NEW DELHI, July 15: The delay in the privatisation of Internet services has led to the mushrooming of small establishments offering Internet-related services all over the country. These establishments have been operating profitably as they are able to charge sufficiently high rates for their services.

The services provided by these establishments range from allowing clients to surf on the net to downloading specific information. Alpha Cybernetics International Private Limited, a two year old Delhi-based firm, claims to provide the facility to send and receive e-mail and use internet for a sum ranging from Rs 800 to Rs 1,500 per month.

Enternet, a new entrant is bullish about the prospects in this business. It has started off with two multi-media computers and a dial-up line and plans to add a few more to meet the growing demand. The initial investment for starting a cybercafe with two multi-media computers, a PSTN connection and a TCP/IP (dial-up) line ranges from Rs 5 to Rs 10 lakh.

To get a dial-up connection these small shops pay the Videsh Sanchar Nigam Limited (VSNL) a registration fee of Rs 500 in addition to Rs 5,000 for one year or 500 hours, whichever is earlier. For a PSTN connection a nominal payment is made to Mahanagar Telephone Nigam Limited (MTNL) for the calls.

The Welcom Group of hotels was among the first few to launch the concept of cybercafe in the country.

The initial response was euphoric as people rushed for a feel of the Internet experience and to avail services, but soon the number of users dwindled due to high cost and difficulty in accessing the line. The executives in Maurya Sheraton, a Welcom Group hotel, however, disagree and claim that the number of users has gone up.

Considering the huge potential the Internet has, more and more people are investing in Internet related services.

In fact, a newspaper group is planning to set up 20 such cybercafes all over the country. It plans to have a 64 kbps leased line for a faster and trouble free service. However, Netstacy's Rohit Juneja feels, "With VSNL as the only ISP, it will be difficult to assess the strengths and weakness of TCP/IP and leased line." Interestingly, the VSNL does not allow a subscriber to use the Gateway Internet Access Services (GIAS) for commercial purposes.

The officials in VSNL said, "As per the terms and conditions of GIAS, a TCP/IP account holding subscriber is not allowed to resale the Internet services.

"The small cybercafe owners state that the terms and conditions of GIAS are ambiguous, it does not state that a TCP/IP subscriber cannot provide internet services for a price. Juneja contended, "If Maurya Sheraton and NIIT are allowed to provide such services, we are also helping the society".

If the present situation persists and the privatisation of Internet services is delayed the growth of cybercafes is inevitable. This also carries the risk of deteriorating quality of service for customers. In such a situation VSNL does not stand to gain as it will not be ensured of steady revenues.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.