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The e-Cable Guy

By Rakhi Mazumdar

In the race to leverage the last mile, several ISPs are betting on cable as a means to pipe the Net into homes. And they are now switching on the heat: India's leading wannabe Net-via-cable companies are all incubating tie-ups with content-providers and other partners. The Hinduja Group's Mumbai-based IN CableNet in Mumbai will soon announce a strategic partnership with a US-based Net service-provider, and the Calcutta-based RPG Netcom has joined hands with Satyam Infoway.

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But could these companies be downloading a sea of assumptions? In its basic form, access through cable-via the cable TV operator-bypasses telephone lines. These cables could be either connected to PCs (for which a consumer needs to purchase a cable modem) or TVs (for which a Web TV box has to be bought). Superior performance to dial-up lines and lower monthly charges for unlimited access are obvious advantages of the medium.

But are the 23 million C&S homes in the country ripe for the Net? The US example has shown that users unfamiliar to the PC are less likely to take to surfing on the TV. Moreover, there's the cost involved (Rs 15,000 for a Web TV box)-and the perception that TV is not ideal to view graphics and text. Obviously, low PC penetration will hurt too.

Counters Utpal Ghosh, 34, Manager (Consumer Research), IDC: ''Although the experience in other countries is not encouraging, high cable penetration does hold out promise for mass access to the Net through cable.'' Sure, the cost of a cable modem is expected to come down further-it already has, from Rs 40,000 a year ago to around Rs 15,000 today. But will customers, and companies, cable themselves to the Net?

Coffee, Tea, Or e-Mail?

You've got m@il? So do hundreds of free e-mail-providers. To stand out from the crowd, Web-based e-mail services are moving in a new direction: the real world. The pioneers were the Chennai-based bharatmail.com, which accepts e-mail even for those who have no Net connection, and simply delivers print-outs. Now, others are joining in. Take sawaal.com, promoted by 2 computer engineers from IIT, Kanpur. Here, if a customer cannot access her e-mail, she can call up a Mumbai telephone number, key in a user ID, and have her messages read out to her. Then there is chequemail.com, which pays users to access their chequemail account. The logic: sharing ad revenues with the subscribers will attract more of the latter away from competitors-which should then help attract more ad revenue for the e-mail-provider.

There's more. Suvi Information Systems' portal, webduniya.com, allows users to get their e-mail translated from English into a choice of local languages. Surfers using e-patra have the option to view and edit the on-line translation. And Zingmail, which is offered by broadcastindia.com, enables users without access to e-mail to dictate voice messages-which are played back to recipients. P.S.: Aur www.epatra.com-the first e-mail service with vernacular options-ke baare mey na bhuliye.

-Chhaya & Hasnain Zaheer

HoHoHo ! An On-Line Xmas

E-CAPSULES

SEBI has approved Net-based securities trading, and exempted venture capitalist-funded firms' IPOs from the3-year profitability track-record.
Intel has announced plans to sell Linux-powered Net appliances.
McKinsey & Co. has set up India Venture 2000 to fund start-ups. The Aditya Birla Group has tied up with Lawson Software for B2B solutions.
Hughes Software has appointed PWC and Kotak Mahindra to scout infotech acquisitions.
The GOI has approved a Rediff.com proposal to tap the ADR/GDR market with a $75-million issue.
Network services IT&T has set up an e-software services unit.
Citibank India has launched e-Commerce, e-banking, and cash-management solutions.
HDFC has set up a joint venture with the Singapore-based telco SESAMi.com.
Satyam Infoway has launched Serwiz.com, an on-line marketplace for services.
The GOI has eased the norms for Net and infotech firms making ADR/ GDR offerings.
Sun has announced an incubator programme for infotech start-ups in Asia.
Domain-name owners have been given the option of 10-year leases.
IDBI has set up a Rs 100-crore infotech subsidiary, and a dedicated Rs 50-crore venture capital fund.
Hewlett-Packard has announced a strategic partnership with the B2B site, Trade2Gain.com.
eVentures India will invest $25 million in the community site, Chaitime.com.
The tax holiday to ISPs has been extended by 1 year.
Pioneer Networks plans to invest Rs 100 crore in setting up ISP gateways.
Aptech has launched an education portal, onlinevarsity.com.
Satyam Infoway has filed a prospectus for a $130-million ADR float with the Securities & Exchange Commission.

Despite the hype and doomsday predictions, it went well. No, we are not talking about the elusive Y2K bug. It was e-Commerce that flourished in the Christmas shopping season, topping up an extraordinary year for global on-line retailing. While many consumers are unhappy with the service on the Net, they are spending more money. According to a recent Ernst & Young report on on-line retailing, US e-shoppers spent an average of $1,205 in 1999, compared to $280 in 1998.

It gets better: the Ernst & Young report-which surveyed customers and on-line retail companies in 6 countries-says that an army of non-buyers are raring to make their first on-line purchases. A whopping 79 per cent of US non-buyers (the lowest among the 6 developed countries surveyed) plan to make purchases via the Net in the next 12 months. If this trend continues, avers Ernst & Young, on-line shopping could become a mainstream activity in the next 12-18 months. Expect e-revenue to double, to around $50 billion.

And who are the winners? Jeff Bezos' Amazon.com, and, to a lesser extent, auction site eBay lead the pack by a big margin. Not surprising as books, CDs, and PCs continue to be the major items purchased on the Net. But Media Metrix, which identified the top 20 e-Commerce sites for the 5-week holiday-shopping period from Thanksgiving to Christmas, points out that holiday-related e-Commerce showed major gains since last year. US customers are also picking up items like apparel, drugs, and groceries through the Net now.

Only 13 per cent of the companies surveyed reported profits. But that is hardly a dampener for the successful on-line retailers, most of whom are click-and-mortar companies. Interestingly, the majority (53 per cent) of those surveyed use their own distribution centres for warehousing and delivery. Others turn to third-party distribution, or to direct shipping from suppliers. As the medium matures, predicts Ernst & Young, supply-chain management will converge on practices in the non-digital marketplace. Still, www.santa claus.com is virtual no more.

by Sunit Arora

 

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