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THE NET
India, Still Internet-shyAjit Balakrishnan
 1998 saw the world embracing
the Web with a new fervour, driving up Internet stock prices to dizzying heights, buying
goods and services online as if shopping was going out of fashion. In India, the
developments on the Web crept along in slow motion setting the country back in yet another
aspect of life. Look at these indicators:
- Dial-up subscriber accounts rose to 1,50,000 by March 1999
while Chinese users are counted in the millions.
- Just about one-and-a-half private sector ISPs started
operations with another 3 or 4 declaring their intention.
- While dial-up prices came down a bit, leased line charges
(which drives corporate internet access) continued at six times the US price effectively
preventing the corporate sector from adopting the Internet.
- There is an Information Technology Bill waiting for Parliament
approval.One wonders when this will be done.
 What all were the positive
indicators?
- Plentiful venture capital flowed in with over 40 funds with
capital in excess of $5 billion ready to invest in Indian technology companies. For the
first time in post-independent India we have surplus capital chasing a few good deals.
- Venture capital firms started hiring tech-savvy people, so
entrepreneurs have now some intelligent people to talk to.
- The Andhra Pradesh Government's effort to build an IP-enabled
network to deliver government services rightfully got a lot of attention; this is bound to
serve as a model for other states in the IT que.
How can we make 1999-2000 better than last year?
- Get NASSCOM, CIE and other major trade bodies to lobby
effectively to get government to stay out of the Internet world; government efforts to
promote the infotech industry has till now resulted in nothing other than provide
impediments in the way of entrepreneurs. Even as I write this, one can see efforts being
started to create digital certification authorities which are government owned-these will
serve no purpose as the Net is international and the need of the hour is for Indian firms
to get themselves certified with internationally recognised authorities.
- Lobby government to make sure that VSNL divests its ISP
business to an arms-length joint venture to pave way for a level-playing field. And till
this happens we would not be seeing sufficient number of ISPs entering the fray. This is
essential for quality of service to improve and access chargs to come down.
- More experienced and wealthy executives and entrepreneurs
should step in and act as Angel Investors to help guide young companies through that
critical phase till they have a proven product and a business plan and are ready for the
venture capital firms-we need these young companies to succeed with their product ideas.
The writer is chairman and CEO, Rediff On The Net
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