Unlike the on-line service providers in the USA or Western Europe, the growth of the on-line service providers in India has started tapering off. Major factors affecting the growth of Internet access in India have been partial deregulation of the telecom sector as opposed to complete liberalization, poor telecom infrastructure, a narrower home PC base, a high level of price sensitivity among the target audience, and a lack of effective exploitation of the on-line services for delivering content. For these reasons private sector service providers are slowly becoming marginalized in India. Any emerging country which wants to exploit this medium successfully needs to keep these constraints in mind while planning for the future.