Reversing the trend of last year, Satyam Infoway, the Internet services provider (ISP) arm of the Satyam Group has hiked the access rates of its services for the second time this year. Satyam’s ‘Unltd’ range, which is focused on heavy users of the Internet, has seen a cumulative price increase of over 22 per cent since the beginning of this year. The first increase of 15 per cent happened in January 2001, whereas now Satyam has hiked up the charges by 7 per cent.
Confirming the hike, the firm’s president, Internet access, Mr. Ramesh Ramanathan said: “Over the last 15 months, the position of ISPs in India has become untenable. The prevailing prices therefore do not reflect the market dynamics and are unviable for the industry. This needs to change. Our effort at increasing prices is a reflection of this position.”
According to the ISP industry, primarily companies who are infrastructure providers, which provides bandwidth to the ISPs and who in turn compete in the retail segment have driven Internet access charges down to abnormally low levels. This forced ISPs to drop their access charges too, last year, in bid to garner more subscribers. And Satyam had led the pack in dropping prices by introducing a package for unlimited access at Rs 299.