The Internet, sans hype

It's not so often that a new development generates a huge amount of noise. The Internet is doing it -- it's everywhere -- the subject of discussion and debate, hectic investment activity, and even soul-searching among the stodgiest of companies. Even in India, where it has arrived a bit late, but is storming the citadels of conventional media.

It's the future, they say, something that will affect the very way workplaces, marketplaces, producers, consumers, and individuals behave. Many are feeling threatened by the idea of getting left behind if they don't vibe with this new medium. But how fast will the Internet really affect India? How much time will it take to realise its potential?

In a candid chat with domain-B, Prakash Gurbaxani, CEO, Micromedia, the technology media business arm of the Bangalore-based Microland, mused on timeframes and the potential of the Internet in India. Micromedia started operations in December 1997, and expects to close the current financial year with revenues of Rs 4.5 crore. Micromedia is also the company that has just completed its second India Internet World conference and exhibition in New Delhi.

"If the Internet didn't have the potential to be used as a medium of transaction, you and I wouldn't be here." Mr Gurbaxani says, obviously referring to the meeting we're having. "But the long-term sustaining model for the Internet is e-commerce."

Whoa! Hold on! Aren't we jumping the gun a bit here? Shouldn't we be first discussing Internet penetration before we can even begin talking e-commerce?

The bigger picture
"Okay, but let's begin by first keeping India out of it, and looking at the bigger picture. Let's look at whether the Internet is an opportunity or not," says Mr Gurbaxani. He talks of companies in the US that have shut down physical operations and gone totally online. "Mecklermedia, for example, had four or five print magazines it published till last year. Now it has only one in print. The others are now available only on the web. The niches Mecklermedia was tapping saw subscribers for the print format plummeting, but similar information on the Net has page views shooting up. Of course, this model works best provided access is not an issue."

Ah, so there' s a problem -- access. Where's the infrastructure for Internet access in India? Especially for e-commerce the way it's there in the US. "In India we're emerging from next to nothing." But there is this potential to leapfrog. Even in America, acceptance of transactions on the Internet came about only around 1998, when people started feeling comfortable putting their credit card numbers online. But then see what happened! It took Wal-Mart 20 years to earn its first billion dollars. It took Amazon.com just a year to get there.

Mr Gurbaxani feels that in its own way, India is also leapfrogging. "We had one ISP (Internet service provider) last year. We have six now, at a national level." Sure, there are infrastructure problems -- the computer population is smaller, so is telephone penetration. "But the way I look at it, local problems force people to create local solutions. So there's a lot more to Internet access via cable in India. If we can crack that, we can gain so much on the business-to-consumer end."

And that's not a fancy. Several TV manufacturers are considering providing Internet access capabilities in their sets -- either through set-top boxes or through built-in components. Some have already launched such sets.

Says Mr Gurbaxani, "Let's face the reality. I fundamentally believe that money talks, bullshit walks. The reality is that the average-earnings consumer doesn't have the available money, so he says, "Sorry, no computer." But he gets a set-top box to get him on the Internet by paying marginally more over the price of his TV. Once he gets exposed, he could decide to go about doing it the 'right way'."

India will leapfrog
He believes that Internet through cable will grow much faster in India and China than in the US. "Where's the compulsion in the US?" He believes this is the most likely way to reach critical mass.

What about mindsets? Surely, shifting to a new medium takes time? Mr Gurbaxani agrees. However, he argues, if exposure can be enhanced, speeded up, and the concept of the Internet demystified, the shift can happen much sooner.

Having said that, he reiterates his belief that India will leapfrog. He believes that awareness levels and understanding of the Internet are on the rise already. His company is putting money where his mouth is.

Micromedia has just completed its second India Internet World conference and exhibition at New Delhi's Pragati Maidan between 22 and 24 September.

The first such event was held in India last year. "Then, I had to explain the Internet opportunity to companies we approached for participation. This year, we find the awareness is already there. Significant too, this year, we will have twice as many participants."

The company's objective? Internet World is an India-focused show to make people aware of the opportunities available. "We want to bring to the fore the number of players in this industry -- those using the Internet to create new businesses or those who fundamentally want to change the way they conduct their business. Through such exposure, we want to demystify the Internet."

Internet World is an ongoing worldwide event that aims to raise awareness of the Internet as the new-age opportunity. This year, Micromedia co-hosted the event with Penton Inc., a US-based company that publishes 40 business and professional magazines, including the Internet World and Boardwatch. Penton has hosted Internet World in other parts of the world.

Mr Gurbaxani has another very strong item on his wish list for Internet expansion and proliferation in India. "For the market to really explode, international gateways must be allowed entry into India. Just look at the opportunities here. It would be cheaper for companies abroad to transfer their host sites to India. And, qualified people are already available here. My gut feel is that right after the oncoming elections, say, within six months, the government will open India up to the international gateways. If that happens, we will see the Internet industry's dynamics changing and the industry exploding."

Mr Gurbaxani has a high level of confidence in the growth of the Internet in India. So much so that after working large scale non-Internet projects abroad for 14 years, he packed up his bags and returned to India, to enter the nascent Internet business here.