I have been a VSNL dial-up connection user for a period exceeding 2 years.
These 2 years have been a pleasant experience, when one takes into account the speed and service of other dial-up connections, and the lack of better alternatives.
Speed wise, one usually gets a 42kbs connection. This is quite fast considering the fact that maximum speed is only 56 kbs in India.
More often than not, One gets connected on the very 1st dialing attempt.
Speed is maintained, and there are no abrupt disconnections.
Service is quite satisfactory. One can expect a reply on a email complaint within a matter of hours. The backend operations of this PSU are of high standards, which is quite a pleasant surprise.
The POP mail server is rarely offline. The Mail interface online is quite basic, but downloading speed is really fast.
Coming to the cost, well, VSNL is quite in tandem with its competitors, especially when one considers the offers it comes up with (it recently had an offer of buy 500 hrs, & get 500 hrs free).
A word of caution: Some of my friends have experienced speed problems. Speed sometimes seems to be affected by the area you are in.
Dial-up connections have lost their sheen when compared o Cable and DSL. But if you still want to stick to dial-up, VSNL is your best choice.
Hopefully, the TATAs wont spoil the party. :)
Happy Surfing!