However, valuation of companies in this segment is expected to be of crucial importance, the study added. Mergers and acquisitions between ISPs is likely to be motivated by the need to increase geographical coverage and improve the quality of service, whereas other acquisitions would increase the product portfolio of companies. Dalal said dotcom companies must realize that they are technology enablers who change the way the business is done, and added that highly focused B2C companies have a bleak future because bigger players, with a wide range of services, are likely to edge them out. However, he predicted that B2B dotcom companies have a good future. There is enormous value stake, within and outside the corporation.
Incumbents are in a powerful position to capture the opportunity and are doing so.