Another one of those idiocies that plays out in Indian Telecom market.
TDSAT has scrapped the order for reduction of International bandwidth rates; clearly flies in the face of logic to increase the broadband peneteration. This order comes in from retrospective effect. So we all know that it was fools day annoucement. I was guarded in my enthusiasm since I was sure that VSNL would appeal; it won too is a double whammy. A blow again to the cheap broadband access.
As per the article in Economic Times it says that TDSAT wanted TRAI to divulge in a transparent manner as to how the cut in the rates were affected. Further the article says “According to VSNL, the price ceiling set by TRAI was below the basic cost of the company”.
VSNL lost out its monopoly status in carrying international calls to BSNL. Then, it has lousy orientation to the end user and individual customer. Despite it’s advertisements, they clearly need to lead the focus on Internet if they need to survive. Frankly I feel that they have hired a good legal team which was able to force the TDSAT to go against the national interests. Being a monopoly, it feels that it can abuse it to any extent.
Strange strange. No word from Reliance or Airtel. Is it that they are sitting quiet and watching. Or is it that they would not open up themselves at this juncture. Or they have quietly ganged up together? No word from them so far. Of course, the Media would be slow to react as always and fail to question the motives behind this.
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I disagree, the only thing the drastic cuts would have done was to cripple a company that 'is being rebuilt from the bottom up'. The level of cuts was not justified. If the only reason was to provide benefit to BSNL, let the government payout VSNL for the existing contract and set up their own cables.
VSNL is not a monopoly. Its just that BSNL has an exclusive contract with VSNL and they should honour it.
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