Data Access: Connecting with GenNext?

NOW is "Network of the World", Pacific Century's
very visible Hong Kong-based ISP. In India, it's from Data Access–a JV between
Hong Kong-based Pacific Century Cyber Works (PCCW) and New Delhi-based SPA
Enterprises. Data Access believes that although broadband is a much-talked-about
technology, it will take a long time to actually take off. About 95% of the
Internet users still use a dial-up connection and NOW offers a combination of
content and connectivity within the connection that is presently available with
the people. With its own gateway, NOW helps avoid the erratic connectivity that
results due to heavy traffic on the VSNL gateway. Also, to bring the broadband
experience to its users, the company is also planning to go the DSL route.

Unlike other ISPs that are busy investing in creating huge
infrastructure and spreading their networks all over the country, NOW is
following a more cautious and rather realistic approach. It has no intentions of
investing in laying cables or spreading across the country all at once. The
company is initially focused only on four cities–Delhi, Mumbai, Chennai and
Bangalore–where 75% of the Internet users are based. Though it’s in these
cities that the competition will be the hottest, NOW is taking a fast moving
consumer goods (FMCG) model and is investing heavily into building the NOW brand
with a heavy marketing exercise.

Like the FMCG model, the company is targeting the youth
segment in the 19—29 year age group. The launch initiatives include
participation in activities such as college festivals and road shows to increase
visibility. A distribution channel of over 300 retailers is already in place and
will be gradually strengthened. The service claims a subscriber base of 25,000
users and an average sale of about 400 trial packs a day recorded only a month
since the launch.

Data Access, which is a 51:49 joint venture between PCCW and
SPA Enterprises, had already invested about $60 million by December 2000 and has
plans to invest up to $100 million within its first year of operation. PCCW, one
of Asia’s leading integrated communications companies, already has an
established presence in telecom, B2C, B2B, infrastructure, data center and Web
hosting services. With a focus on a few cities, heavy investments in brand and
with a rich cash reserve from its international partner, NOW will continue to be
in the limelight for the current year. DQ