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VSNL's leased line rate cut -- No impact on Net access charges
Our eFE Bureau
Mumbai: The recent announcement of a drop in rates for leased lines for corporates and the International private leased circuit by VSNL, may not result in any change in pricing as far as the retail subscriber base of private ISPs goes. The consensus seems to be that retail prices are already at their lowest and there is no way to move but north. Where the rate cut will make a difference, however, will be in the quality of access for the retail user base. "The obvious fallout of the drop in leased lines rates for the ISPs is that they can now go in for additional bandwidth and will be able to offer their subscribers better quality of service," says Mr KR Vaidyanathan, executive director sales and marketing Roltanet. As per the revised tariff for the Internet leased line, a 2 mbps circuit that used to cost Rs 41.8 lakh, will now be available for Rs 12.5 lakh and a 64 kbps line will cost Rs 2 lakh per annum as compared to Rs 5 lakh earlier. This drop in rates will, however, have little effect on the user accessprice. "The access price is already low and cannot go any lower. Some of the ISPs in fact are considering an increase in their access price, though we have not really decided on it," Mr KR Vaidyanathan adds. Mr Arvind Nair of TringTring.com, the ISP from Aptech Internet points to the fact that greater availability of bandwidth would in effect reduce telephone charges, thereby bringing down the access rates for the retail users. "It brings down the cost of leased line access to the Internet, which will spur the leased line access of the corporates throughout India, but the price cut for the retail users had already been factored in in 2000 and will remain stable, though users can expect the quality of service to improve." adds Mr Pillai, president pacific Internet India. Mr Pillai interestingly points to the fact that VSNL appears to have slashed its prices in the face of competition from private gateways.Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
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