wordpress blog stats
Connect with us

Hi, what are you looking for?

Sify Prepares For Decline Of Cybercafes With VAS; $3.23 Million Loss

The transformation of Sify into an enterprise-only business doesn't appear to be too far away. The numbers dont lie: Sify reported revenues of $3.09 million for Q1-11, less than 1/10th of its enterprise revenues of $32.52 million for the quarter, and 7.9% of total revenues of $38.63 million. Consumer business revenues business declined 44% in the first quarter of the 2010-11 fiscal, in comparison with the same quarter last fiscal year, when it reported revenues of $5.54 million. At the same time, the growth in the companys enterprise business has been significant at 19.5%. Overall revenues have grown 9.5%. Nevertheless, the company has given itself 12 months for the consumer business to become profitable. The traditional franchisee cyber cafe model is ramping down according to the company, which has resulted in an investment in a services based model, and look beyond its own franchisees (and reduce CAPEX). Company executives said on the conference call that with the growth of home and office broadband connectivity, the need for cybercafes has come down. Added to that, the pressure of an increase in real estate costs, wages and electricity. In what appears to be a veiled hint that it is rolling back its e-ports strategy (single computer kiosts), execs said that "the way Sify would have overcome this, is by expanding cafes to more locations by expanding the network, but that is not our model." I suppose they meant that this is not their model anymore. What About Sify's Own Home Broadband Business?…

Please subscribe/login to read the full story.
Written By

Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

Free Reads

Technology Policy Review October-December 2020

News

The deep tech policy of India is in the inter-ministerial consultation stage.

News

The unit is also set to "identify suitable cases for defence applications by fostering collaboration with academia and industry."

News

A recent report by CDCL presents ex-ante rules as existing in a complementary relationship with ex-post rules, where sectoral authorities would “set the rules...

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

NPCI CEO Dilip Asbe recently said that what is not written in regulations is a no-go for fintech entities. But following this advice could...

News

Notably, Indus Appstore will allow app developers to use third-party billing systems for in-app billing without having to pay any commission to Indus, a...

News

The existing commission-based model, which companies like Uber and Ola have used for a long time and still stick to, has received criticism from...

News

Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...

News

Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ