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AG Krishnan
The Internet policy to be announced over the weekend is a watershed in the sense that VSNL's unquestioned monopoly as an Internet service provider (ISP) would end. A level playing field needs to be ensured for all private ISPs keeping in mind that all of them are partakers of the same information highway through the worldwide web, a gigantic storehouse for information and analysis.
But practically implementing norms for private ISPs would be the real challenge in the years ahead. The ISPs should be totally free to set up their infrastructure backbone wherein they would be free to connect their local nodes and customers using optic fibre networks. The slashing of leased line rates will greatly help the prospective private ISPs as access charges will be one of their main costs.
News reports suggest that DoT has apparently cleared to permit the ISPs to set up "last mile links" into subscriber premises. Though this might eat into the business of the basic telephony service providers, mostly the private oneswho have paid huge licence fees, the move is largely welcome in the interest of Internet proliferation.
Also telecom experts are unanimous in stating that any alternative access network for Internet alone was unlikely to bring down the cost, compared to a network which provided Internet connectivity along with voice telephony. It is impractical to have two access networks reaching individual homes. Moreover, looking at the wireless and cable modems to provide an alternate access network separate from that providing voice telephony, was only going to increase overall costs.
There is a possibility that the local cable operator could provide services by just getting connected to an Earth station through VSAT. But considering the fact that monitoring such players is difficult, the advent of Internet telephony eating into the revenues of the basic service provider arises.
In the event the private ISPs are given the option to set up their own international gateways, this would involve an enormous expenditure.One solution could be that ISPs could set up their own international private leased lines bypassing the Earth stations. But since VSNL is slated to maintain its monopoly over international long distance services till the year 2004, a revenue-sharing arrangement between VSNL and the ISP is inevitable.
This would still ensure VSNL's stranglehold over the sector. The solution would accordingly be to prematurely end VSNL's monopoly over international long distance services. Around 250 ISPs all over India have already shown their willingness to provide Internet services and three to four companies have nearly completed the job of setting up the backbone network for providing the services.
Experts say that once given the green signal, these companies could start providing service within a month or two. The opportunities are enormous. Worldwide, a huge amount of business has already been transacted through E-Commerce on the Internet. So the time is ripe for the government to formulate a policy which would ensurethe rapid growth of this medium.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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