VSNL to cope with internet access tariff war by riding cable TV networks
Aaj Thak
Mumbai, December 22: Videsh Sanchar Nigam Limited (VSNL) has decided to make available internet access via cable TV networks and on televisions through set-top-boxes, to counter unfair web tariff warfare.
VSNL has also decided to slash internet tariff by 15 per cent and is Awaiting Telecom Regulatory Authority of India (TRAI)'s nod to lower the charges in order to match those of MTNL, VSNL Director (Operations) Amitabh Kumar announced. He added that VSNL is currently engaged in talks with various cable networks for utilisation of the new channels for accessing internet.
He alleged that MTNL was resorting to "unfair practices" by leveraging on its main role of being the basic telecom operator -- which can benefit through the new revenue generated through enhanced connectivity and ensuring optimal utilisation of its infrastructure.
"We are also totally against MTNL's proposed offer of providing unlimited net access at Rs 6000 per annum, as it is not at all feasible to provide services at that rate without cross-subsidisation," he added.
Though in some countries net access was provided free of cost under a tie-up between an ISP and basic operators for sharing costs, VSNL was opposed to such a business model altogether, he said adding the "MTNL move would render private ISP operators unviable".
However, as of now VSNL's net business was earning a profit margin of Rs 160 crore out of total revenues of over Rs 400 crore per annum, he said.
Opening up of gateways for private sector would only add flavour to net services offered by different ISPs, he said adding, however, this move would affect VSNL which had built gateway bandwidth with an outlay of Rs 80 crore, based on the country's requirements for the next 10 years.
Referring to the proposal to allow private ISPs to use the services of foreign satellites, the charges of which were cheaper, he said VSNL has also approached the government to make the benefit applicable to it as well. |
