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SCMP Reporter

THE popularity of the Internet among business, school and home users has spawned a host of money-making ideas and business opportunities for service providers in Hong Kong.

  In recent years, the number of registered service providers has grown to about 40, while there are more than 20 others offering access.

  This has led to fierce competition among all providers, which also means that each provider has to come up with various business strategies and an array of customer services.

   Some providers attempt to lure customers by offering improved overseas access.

   Last month, AT&T Internet Services announced dedicated and dial-up access in Hong Kong and Australia for Internet access providers and business customers.

   In addition, it offered the first Asia-Pacific regional Internet 'backbone' connecting Australia, Hong Kong and Japan.

   But before it upgraded the service, AT&T Internet Solutions had been covering the full spectrum of business needs, including accessing, planning, setting up, operating and maintaining dedicated, leased line connections to the Internet. It has also set up a World-Wide Web site, to support electronic commerce and publishing.

  Yvette Ong, sales director of Messaging Services of AT&T Asia-Pacific, said the company sought to provide as many services as possible.

   AT&T's services range from basic telephony to wireless. They also have on-line services including the Internet, and electronic transactions that are easy to use.

   'We are providing the first Internet backbone in Asia-Pacific region and we would welcome all the other Internet access providers who would like to be connected with us to become part of the backbone,' Ms Ong said.

   'The Internet is in its infancy, and there is plenty of room for growth.

  'We believe the growth will come by giving customers what they are asking for: ease-of-use, reliable service backed up by superior customer care. AT&T has a long, strong legacy in these areas.' She added that there would be an explosion of Internet useage in corporations in Hong Kong and the Asia-Pacific region.

   Besides providing access to ISPs and high-end corporate customers, AT&T owns and operates leased lines and is also equipped to provide bandwidth on demand.

   Its worldwide network carries more than 125 million voice, data, video and facsimile messages every day.

   'Our new Internet backbone network will provide the first dedicated, high-quality, intra-regional connection for Internet customers in Australia, Hong Kong and Japan,' Ms Ong said.

   'We also provide consulting and professional services to help Asian businesses set up as ISPs for electronic commerce on the Web.'     The company will also offer database design, management and maintenance services to groups for material available to the Internet community and the World-Wide Web.

   In Japan, AT&T is the market leader in offering Internet access to ISPs and corporations.

  IBM Global Network, another Hong Kong ISP which launched its Internet services in May this year, offers dial-up Internet access, leased line Internet access, content hosting and consulting services. It also has hardware and software solutions for its clients. The company is also targeting the business and home market.

    IBM provides easy-to-use Internet client software with on-line registration, phone book facilities, customised modem scripts to allow the average home users access to the global computer network.

  What is more, each registration can create up to five additional IDs which is ideal for a typical family.

   IBM provides hardware, software and service to enable business customers to fully exploit the benefits of the Internet.

  Its product range includes hardware platforms for Internet servers: RS/6000, Internet Firewalls; Internet Connection Secured Network Gateways, Web Servers; IBM Internet Connection Servers for AIX, connectivity; leased line connection to Internet via IBM Global Network, and Anti-Virus software (IBM Anti-virus, Enterprise Edition).

  Paul Hugh, information technology specialist for IBM China/HK Corporation, said existing ISPs were likely to consolidate their services as large companies such as AT&T begin to offer services.

  'When the security problems on the Internet are resolved, more business will go on-line and provide different types of services to home users,' he said.

  'Together with the advance in technology, services like video-on-demand, videoconferencing and home shopping will be available, too.

   'We are in a better position as we can leverage on our experience and expertise, not to mention our worldwide infrastructure. Hence, we can provide worldwide, high-speed Internet access at a competitive price.'   IBM was one of the major contributors of the deployment of NSFNet, which forms the Internet backbone in the United States.

   As the application of the Internet hasmoved from a mainly academic to a business emphasis over the past few years, it seemed natural that IBM should begin providing Internet services, he said.

  With the worldwide deployment of ATM switches in 1996, the IBM Global Network will further enhance its Internet service in terms of performance and availability.

   Another provider that is appealing to business users is Hong Kong Internet & Gateway Services which began operations two years ago. HKIGS hopes to attract corporate and other heavy users.

  It provides Internet gateway services including dial-up, leased lines and home pages, in addition to improved access speed and customer services.

     Industry experts say that as the useage widens it will help to expand the market to include people who are not necessarily highly computer literate. Jean Ng, division manager of CompuServe Hong Kong, said wider useage could benefit businesses with an international presence.

    She said more subscribers would be looking for worldwide networking.

   But she said there were many commercial challenges that service providers had to overcome.

  'For instance, making investments in company support and computer infrastructure to cope with the huge growth in worldwide membership is one of the challenges we face,' she said.

   CompuServe overcame many challenges over the years as it improved its services and expanded.

    Launched in 1979, CompuServe went international in 1986 when it signed a joint venture agreement with Fujitsu of Japan.

  In that time CompuServe was deemed to be the world's largest computer information service.

   It was also a company that introduced creative solutions to help Internet users.

  Ms Ng also admitted that there were a host of challenges in running and maintaining an information service such as CompuServe's.

  She also said that it was important to keep in mind that not everyone who uses, or wants to use, a computer is a technical whizz. It is always necessary to think of those who are not technically minded. But that is no guarantee for success in the future, considering the number of competitors who continue to extend their scale and scope of operations.

   Ms Ng said the ability to provide a variety of information, a reliable network, an easy-to-use and easy-to-install interface, and global access through domestic telephone lines was needed to stay ahead of the field of service providers.

  All this is done with a local phone call in over 150 countries round the world.

     CompuServe offers more than 3,000 services including Internet access, electronic mail, computer support from more than 800 hardware and software companies, up-to-date news, professionally maintained databases, global stock quotes, discussion areas for professional interests and hobbies, and many others.

  According to CompuServe, general users, business users, and those who need access to quick, up-to-date information, could all be regarded as potential clients.



ISPs expand services