Corporate Services means big bucks for ISPs
For internet service providers, corporate services are the new buzzword. Plain advertising revenue is passe.
Published - 15-November-2000
While some ISPs have started seeing a sharp spurt in revenues coming from services like networking solutions, virtual private networks etc, there are others like the Videsh Sanchar Nigam which is fast drawing up plans to enter the fray.
The trend is a shift from revenue models built on eyeballs to wooing the corporate sector with various solutions. In the case of Chennai-based Satyam Infoway, corporate services account for 55 per cent of its total revenues.
Sify has recorded an increase in the contribution of corporate services to its total revenue mix, but resfuses to provide the precise figures.
VSNL plans to foray into the corporate services space to leverage its domain knowledge and expertise in network management and access solutions.
In the case of Caltiger. The first ISP in the country to offer free internet access. Advertising revenues which accounted for 80 per cent of revenues for the April-June, ‘00 quarter, now account for only 40 per cent of its total revenues. The revenue stream is now in favour of services for corporates like networking solutions.