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