The days of lower access charges seem to be over with Internet service providers (ISPs) deciding to hike subscription prices for new dial-up connections.
Delhi-based Net4India, has decided to double the price for a new dial-up connection from Rs 4 per hour to Rs 8 per hour. This is the first time an ISP is hiking prices in a market that has traditionally seen periodic price cuts.
SatyamOnline, is also planning to follow suit. VSNL and MTNL, too are not looking at lowering their access charges further.
According to industry analysts, the total number of Internet connections in the country stands at around 1.4 million.
According to industry sources, the ISPs have decided to double the prices for new dial-up connections because they think that they can afford to do it now. Earlier, the prices were being artificially lowered, as the number of players entering the market was very high.
Dial-up ISP services have not been a lucrative business for the companies because an ISP has to spend between Rs 16 and Rs 18 per hour to service a customer, while it gets on an average only Rs 5 per hour from the subscriber.
Besides, the cost of acquiring a customer is also very high in the dial-up Internet access business.
Source: Business Standard