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.com has competition, .in
By Raja M

MUMBAI - At the al-Amin Communication Center in a muggy evening in Colaba, southern Mumbai, proprietor Babu has neither heard of the Indian government's new Internet policies to boost his business nor cares to know. At shouting distance from Leopold Cafe, a landmark tourist watering hole near the Gateway of India, his Internet parlor continues surviving in a business marked by short lives.

"I don't know," Babu grinned above his T-shirt and Bermuda shorts, bemused how he managed to last longer that two other neighboring cyber cafes that appeared and disappeared in a hurry. "Maybe it's because of tourists." Or maybe because he also runs an international-telephone-call booth and a Western Union money-transfer center.

Generally, India's 13,000-odd cyber-cafes sell Internet access from 50 cents an hour to US$5 packages for 10 hours, as Babu does. Major chains such as Sify Iway, with 2,000 ergonomically friendly cyber cafes across 66 cities and claiming to serve 500,000 customers a month, do better than single cyber-cafes, which have a tougher life. The government's 10-point information-technology (IT) policy hopes to bring better news for the likes of these.

In a bid to build and globally project India's IT muscle, the government last week announced measures to make registration easier for Indian domain names ending with ".in". Communication and information technology minister Dayanidhi Maran announced that ".in" domain names could be registered for Rs250 ($5) a year and in 24 hours. Until now, Indian Internet service providers have depended on cheaper and better quality international servers, mostly in the United States. Currently, only about 7,000 among the 500,000-odd registered Indian domain names have a ".in" registration.

About 60 million registered Internet domain names exist worldwide. Some 40 million of these are in the generic top-level domain (gtld) category, such as .com, .net or .org. The remaining 20 million are in the country-code top-level domain (cctld) category. The Internet Corporation for Assigned Names and Numbers (ICANN) that assigns domain names globally has given individual countries the right to register domain names in the second category under specific guidelines.

The Indian government wants to boost the number of its Internet users from the current 25 million to 40 million by 2010. Last week's announcement fulfilled a promise made in a 10-point agenda announced by Maran on May 26, when he said, "My priority would be to focus on personal computer penetration and thereby bringing cyber-connectivity to every citizen."

The new ".in" domain-registration drive is supposed to reflect India's global dominance in IT. "The process is part of a plan to make India an IT superpower," Amitabh Singhal, senior vice president of the New Delhi-based Internet Service Providers Association of India (ISPAI), told Asia Times Online.

But Singhal made it clear that ".in" registrations by themselves would not be enough. He blamed infrastructure gaps, failed bandwidth promises and higher operating costs for choking Internet growth in India. According to the government's figures, India's subscriber base grew more than 200% per year between March 1999 and March 2001. But the growth rate began to plunge thereafter, largely due to the factors Singhal outlined.

As a remedy, ISPAI partnered the government in launching a new National Internet Exchange of India (NIXI) to route 'Net traffic more efficiently in India. Some 190 Internet service providers (ISPs) are to be connected to NIXI, registered as a non-profit company. The exchange aims to ensure that Indian 'Net traffic remains within India, to reduce costs and increase security. Four exchange nodes have been set up at the industrial township of Noida (near Delhi), Mumbai, Chennai and Kolkata.

While Internet professionals welcomed such moves as the national Internet exchange, not everyone is impressed with the .in drive and Maran's claims that the policy would "facilitate the proliferation" of Internet. "It's too little too late," said Vijay Mukhi, one of the pioneers behind spreading the Internet in India in the mid 1990s. "I would advise against moving from an existing .com domain name to a new .in name." He feels the trouble of maintaining two websites is not worth making the change.

Speaking to Asia Times Online from his popular computer training institute in central Mumbai, Mukhi recalled how he wanted to register a .in domain name in the 1990s but was refused by the National Center for Software Technology. "You are an individual, not a company," he was sternly told. Now he says his Vijay Mukhi domain name is too well established for him to feel the need for a change to an .in extension, never mind the national glory.

Others such as Amit Gupta are ecstatic. "Are you sure? Can you point to a link that states the official announcement? If that's true then I'm going for it!" he posted a note below the news of the .in registration at a technology website. ISPAI's Amitabh Singhal says moves such as the .in promotion are targeted at Indians abroad as much as home-based companies. "Just as Yahoo and MSN have country-specific domain names, we want to ensure an Indian presence for Indian residents, government entities, public-service organizations and businesses."

Rural India, with a population of 700 million, is the next big market. "Despite several attempts over the last decade," groaned a consultation paper released by the Telecom Regulatory Authority of India on telecom services in India, "the gap between penetration of telephony in rural [1.7%] and urban [19.7%] areas is widening and measures need to be taken to reduce this gap."

To spread the spirit, the home page of Tata India.com, the majority shareholder of the erstwhile state-controlled Videsh Sanchar Nigam Ltd (VSNL), sports an orange-turbaned camel rider in a desert surfing the 'Net with a camel in the background. VSNL launched Internet services in India in August 1995 and enjoyed a monopoly until November 1998.

In an official document, the IT Ministry quotes a telecom-based initiative by the Thai government to promote local quality Thai products in the global market, the One Tambon One Product initiative. The Indian governmental wants urban India similarly to outsource its IT-based services to rural India. The government says it could outsource works like digitization of land records, data-entry work, and birth and death certificates to agencies or small entrepreneurs in villages. "This would enable these enterprises to create wealth in rural areas," the document says.

But for now, all that the beleaguered Indian farmer needs to escape crop failure are water, electricity and honest seeds. Internet can come another day.

Raja M is an independent writer based in Mumbai, India.

(Copyright 2004 Asia Times Online Ltd. All rights reserved. Please contact content@atimes.com for information on our sales and syndication policies.)


Nov 5, 2004
Asia Times Online Community





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