Online edition of India's National Newspaper
Friday, July 13, 2001

Front Page | National | Southern States | Other States | International | Opinion | Business | Sport | Entertainment | Miscellaneous | Features | Classifieds | Employment | Index | Home

Southern States | Previous | Next

Next, pay for your email

ALL YOU techno-addicts recovering from the pinch of SMS bills, here's more bad news. You just might have to shell out money for your emails next. Yes, as all usa.net account holders recently learnt, netaddress is discontinuing its free mail service with effect from July 31. The buzz is that soon many others would follow suit.

``In today's changing business environment, revenue sources are no longer adequate to support our free email service,'' goes netaddress' logic behind the move.

The deal is that for a little money (something to the tune of $ 20), you would get additional value-added services like `Control your email', `Protection from viruses', `No advertisement or junk mail', `larger storage capacity' and `customer support'.

``There was no other way out. It was almost inevitable. The advertising revenue is not much, especially in today's scenario. Email service providers like hotmail and netaddress have millions of users. Even at $ 20 per user, it would give them enough revenue that covers at least the server cost,'' says Swarna Ramakrishnan, an Internet solutions consultant.

Giants like Microsoft might be able to hold on to their free service for a little while more, but others would have no other option, she adds.

Online newsletters indicate that even Indian sites (like 123india, india.com) would soon follow suit. People would first hesitate, then once they realise they don't have much of an option, would finally have to pay, the experts say. Just a matter of time before a player like netaddress proves the point and others take the cue.

``See, already we need to pay a rupee for every 3 minutes of a local call for being on the net, plus the ISP subscription of an equal amount. If we have to pay more, then we no longer would have the luxuries of multiple-email accounts. We will just have to be content with the mail IDs provided by service provider,'' says Amal Kiran, an advertising professional.

True, Internet service providers are increasingly providing more value-added services and freebies, given the increasing competition. Satyamonline for example, has a `Net-@- Gift' offer for those who renew their subscriptions.

A 500 hour or 12 month unlimited package enables subscribers to get a Tatafone with a built-in radio and digital clock free. A 200 hour pack gets them an imported camera, a 100 hour pack comes with an offer of a travel bag.

Indya.com that offers free email, recently introduced a `legal' channel which offers services on a subscription basis.

``It is our constant endeavour to provide products and services that create/add value to our users daily lives by simplifying their needs. Indya.com's partnership with Lexsite.com will provide our users with a one-stop destination for all their legal concerns and queries,'' says Neeti Chopra, Vice President - Ad Sales and Business Development, Indya.com.

So are subscriptions at a cost hence, are just a hard reality waiting to happen?

``My gut feeling is that someone like Microsoft will have a different game plan. They have dominated the scene over the years. I guess they would just keep their free email service open and the ploy (of the likes of netaddress) would only result in a further influx of hotmail users,'' says S. Ramakrishnan of Intercept Technologies, an internet research and marketing company.

``Because, a figure like 100 million users (if they reach that) is a big statement for those who deal with eyeballs. So big players like MSN can do good with a lot of advertising revenue, keeping its email service free,'' he adds.

And thankfully, there are sites on the net whose revenue model facilitates users to be paid for using the email service. Chequemail.com for example, promises to share 30 per cent of its revenue with its users, at the end of every quarter. The only commitment required on part of the user is to check his account at least 30 times a month (with more than 3 times a day being ignored).

Will models such as these click? Keep those fingers on that mouse and pray!

By Sudhish Kamath

Send this article to Friends by E-Mail


Section  : Southern States
Previous : Talk of the Town
Next     : An unlikely visitor comes calling

Front Page | National | Southern States | Other States | International | Opinion | Business | Sport | Entertainment | Miscellaneous | Features | Classifieds | Employment | Index | Home

Copyrights © 2001 The Hindu

Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu