It had to happen. BSNL, faced with increasing competition, was forced to cut down the rates. I believe that given the quantum of the rate cut, in real terms it doesnt mean much. Yet, it goes on to prove that telecom operators have realised that volumes alone would sustain them in the future.
In the same report it has been suggested that they have reduced the bandwidth rates by 25%. This rate cuts applies only to domestic bandwidth. Since, the ISP’s lease out the bandwidth from BSNL to further distribute it to customers, it may trigger a fall in prices.
This again is optimistic scenario, because no one really wants a fall in the turnovers. Customer may be damned. Interestingly, VSNL is offering cheap unlimited packages. In their website promos they have mentioned the tariffs; affordable indeed. This is the leveraging of the costs when one is on their own network.
Yet, the quantum of the price cuts is not much. Nor any urgency to increase the peneteration of Internet further. Broadband remains a narrow pipedream in this country.
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