Users are deserting cyber cafés in droves, as government security requirements squeeze out the smaller operators.

Cyber cafés still hold the number one spot for web access for most Indians. But a broadband report by CII-IMRB (the Confederation of Indian Industry, Indian Market Research Bureau) reveals a drop from 60 per cent of access in 2004-05 to 20 per cent in 2008. The consolidation of the industry into a smaller number of bigger players has sucked up the subsidy and support that was earlier provided by the government, and its recent concerns over security have made life a nightmare for café owners.

Naresh Ajwani, Sify president of consumer infrastructure, was quoted in the Economic Times . He said: “We have also seen a drop in our conversion rates from non-branded cyber cafés into branded Sify I-way cafés.” Sify has around 3,000 I-way cafés, of which many have been conversions from non-branded cyber cafés.

Getting a licence in cities like Pune can be a hellish task. Owners not only have to deal with the local police to acquire a 'no objection' certificate for opening a cyber café, the 'café' designation means they also need to get permission from the municipal health department.

Today, there are 180,000 cyber cafés operating in India, accounting for the largest number of internet users, at 36 per cent. 30 per cent of the internet population accesses the web from home, with 25 per cent connecting from their workplace.

The government has been keen to increase the number of internet users in India, but ironically its own slouchy attitude is hindering its objectivity. Internet Service Providers Association of India (ISPAI) president Rajesh Charria believes the situation can be improved without tampering or ignoring security measures . He urged the government to formulate a central law for cyber cafés and remove local police interference. X