Mumbai, Aug 3: The state-owned Videsh Sanchar Nigam (VSNL) has slashed the Internet access charges for leased lines by 10 per cent to 33 per cent. While rates for the higher bandwidth of 2 mega bits per second (Mbps) leased-lines have been cut by 10 per cent, the cut has been steeper at 33.33 per cent for the lower-end leased lines of 64 kilo bits per second (Kbps).According to VSNL officiating chairman and managing director Amitabh Kumar, the cuts in the leased-line access charges have been in the offing for some time now. "We have been planning for quite some time to cut the leased-line access charges and this is a part of our ongoing effort to bring down the cost of Internet access to our customers."
The cuts will be applicable to both corporates using them for their internal purposes as well as for the prospective private Internet service providers (ISPs).
As per the new tariff plan, a 64-Kbps line to the Internet will now cost Rs 8 lakh per annum instead of the previous Rs 12 lakh, a cut of 33.33per cent. Similarly, for a 256-Kbps line, the rates have been cut by 28 per cent to Rs 18 lakh per annum from Rs 25 lakh per annum and for 1 Mbps by 28.33 per cent to Rs 43 lakh per annum from Rs 60 lakh per annum. For a 2-Mbps line, the rate has been cut by 10 per cent to Rs 72 lakh per annum from Rs 80 lakh per annum.
The move to cut leased-line tariff comes after VSNL cut the dial-up access charges a few months ago. At that time, VSNL had cut the dial-up charges for the TCP/IP accounts from Rs 15,000 to Rs 10,000 for 500 hours or one year whichever is earlier. The company had also made available accounts for 100 hours and 250 hours. This time, however, no changes have been made to the dial-up access charges.
The move to cut tariff comes at a time when the entry of private ISPs has been cleared by the centre. According to analysts, the slashing of leased line rates will greatly help the prospective private ISPs as access charges will be one of their main costs.
INSIGHT
Cut aimed atsafeguarding interests
The move to slash the Internet access charges was largely expected. This is because recently, the private ISPs have been given the option to set up their own International gateways rather using the VSNL gateway. Setting up an international gateway would involve enormous expenditure. Therefore in n order to lure the private ISPs and safeguard its business interests, VSNL has slashed its rates. The move will also increase internet usage.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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