Public sector internet service providers registered about 92 per cent increase in subscriber base in 2003-04 compared with 4.2 per cent growth witnessed by the private ISPs during the same period.

Tata-owned Videsh Sanchar Nigam Ltd saw about 14 per cent dip in subscriber base.

According to figures released by the Telecom Regulatory Authority of India, number of subscribers of state-owned ISPs increased to 1.9 million in March 2004 from 991,000 a year ago.

The total Internet subscriber base in the country grew 25.11 per cent and reached 4.5 million by end-March, compared with 3.6 million during the preceding year.

Bharat Sanchar Nigam Ltd (BSNL), with 11 million subscribers, bagged the top position, followed by the Mahanagar Telephone Nigam Ltd (769,000). Sify, with 658,000 subscribers, had the third largest subscriber base in the overall segment and largest among the private ISPs.

State-owned ISPs, BSNL and MTNL, accounted for 42 per cent market share. VSNL cornered about 15 per cent market share.

The internet telephony gathered momentum in 2003-04 after Trai legalised this service in April 2002. The total minutes of use for the internet telephony during the year was around 70 million minutes, Trai said. The department of telecom had given permission to 121 ISPs to offer Internet telephony, of which 43 have started the service.

Broadband subscriber's base during 2003-04 also increased 150 per cent to 190,000 compared to 75,000 during the previous year.

The internet service sector generated about Rs 1,520 crore (Rs 15.20 billion) revenue during 2003-04. The average revenue per user (ARPU) during the year was Rs 310 per month, Trai said.

The PSU service providers, however, were not able to repeat the success in the fixed line telecom front. BSNL witnessed a marginal 5.8 per cent growth in subscriber base, whereas, MTNL saw a 5.6 per cent decline in subscriber base.

Private players like the Tatas and Bharti clocked 122 per cent and 72 per cent growth. The fixed segment grew at 3.28 per cent.