Private sector internet service providers (ISPs) are losing their market share to public sector telcos BSNL and MTNL, which now hold a majority of internet subscriptions in India.

From around 45% in September ’04, the market share of these two companies grew to 53% in June ’05, and to 56% in September ’05. Private sector ISPs, on the other hand, are being squeezed out of the market with their share dwindling from 55% last year to 44% in September ’05.

The number of operational ISPs, too, has been declining in recent months as more and more private ISPs are finding it a financially unviable proposition. From around 190 in March 2004, there were not more than 168 ISPs operating in June ’05.

A silver lining, however, is that the government is planning to allow private operators to access the crucial last mile infrastructure of the two PSUs in its new telecom policy.

Moreover, with the Department of Telecommunications (DoT) recommending telephone operators to compulsorily provide direct access to any service provider demanded by the customer for internet and broadband services, things could improve greatly.

(http://economictimes.indiatimes.com)