Where’s our Share, ask Gujarat ISPs

Internet Service Providers in Gujarat are angry with the Bharat Sanchar Nigam

Limited (BSNL). Gujarat boasts of around thirty odd ISPs, probably the highest

in the country. However, the scenario does not look too good for the industry.

Even as ISPs across the country are crying foul over the alleged

step-motherly treatment accorded to them by the BSNL, ISPs in Gujarat are

particularly annoyed with the fact that they do not get a share of the revenue

unlike STDs/ISD/PCO owners, cell phone companies and paging operators.

Explained SN Khemka, president, Internet Service Provider’s Association of

Gujarat, "To avail our services, consumers use BSNL’s phone lines that

generate revenue for them to the tune of Rs 25 per hour. However, thanks to the

price slashing and competition sustaining policies, the ISPs earn about Rs 6 per

hour. Even if we assume we have 10,000 customers who have brought in a minimum

100 hours from us, the BSNL is assured of Rs 250,000 without having done

anything".

If the ISPs want their share, then the demand should be considered, he said.

A couple of ISP associations are, now, coming together in a fresh bid to

approach the BSNL with their revenue share demand. Presently, BSNL gives about

60 percent of the revenue collected on long distance calls, 40 percent on short

distance, about 20 percent on paging services and a certain percentage to

cellular operators. But there is no agreement between ISPs and BSNL on revenue

sharing.

The association has been asking for this arrangement, since licenses were

being discussed about two and half years ago. Once the licenses were issued,

they got busy with operations. However, the going is now tough, with most ISPs

hitting rock bottom. The association members believe that this could be a good

way to earn returns and sustain themselves.

With the ISP scenario becoming bleak, revival in the form of incentives

appears to be one of the solutions. Khemkar argued that no one could survive on

the ISP business alone. This could only work in the US and UK. He believed that

if the BSNL granted some concessions, these could be passed onto the consumers.

The Internet Service Providers’ Association of Gujarat has requested for

quarterly billing for E1/R-2 lines. The association members, currently, pay an

advance for one-year E-1/R-2 lines to the telecom circle and have urged the

chief general manager of the circle to accept quarterly advance payment in lieu

of an yearly advance.

SN Khemka pointed out that telephone subscribers paid the telecom circle rent

in advance for two months whereas for the same telephone connections (1E/R2=30

telephones), they were required to pay an advance for 12 months. He said that

they comprised the bulk of the consumers of the BSNL, who generates revenue for

them on their investment and infrastructure. The association has demanded

preferential treatment in terms of payment.

Khemka explained that, with the recession in the industry having affected the

cash flow, it would be very difficult for them to pay yearly payments in advance

for E1/R2 lines. The association has urged the BSNL to accept a quarterly

advance for E1/R2 lines.

Nanda Kasabe,



Cyber News Service