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Modems sales rise 88.4 per cent

According to IDC Quarterly Tracker, the modem shipments reached 291,672 units with revenues touching Rs 1.26 billion.

The high growth rate is a direct result of the dramatic increase in the Internet subscriber base in India. Substantial reduction in prices and easy availability has also fuelled this growth. Intense competition, especially from Taiwanese and other Asian vendors, led to a dramatic reduction in pries over the previous year.

T O D A Y

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Among the various speed categories, the 33.6 KBPS modems dominate the total modem market. However, the share of 33.6 KBPS among all speed categories is fast declining as 56 KBPS modems that have been registering a steady increase in their sales, quarter after quarter.

Price was perhaps the only factor that mattered in 1998-99. Most vendors decided to play only on price, because of which the 'average sales values' of modems came down drastically during the year.

The importance of using a low-price strategy is clearly evident from the fact that the ASVS of the top three vendors were among the lowest in the market.

These three vendors, namely D-Link, Lanbit and GVC, together captured almost 63 per cent of the market in unit terms, IDC said.

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