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TRAI: Killing Internet

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This is an excellent write up on (and luckily on Rediff). I reiterate all over again that Business Standard must improve it’s layout and content archival system. This does not befit a premium newspaper at all.

I quote selectively (emphasis mine):

Despite the free licence, less than half of ’s 338 ISPs have survived. Other ISPs have moved to niche markets. And some, according to and , are untraceable. Government companies and control over 64 per cent of the market.

Unbundling the local loop and open and free entry for anyone to serve any size of area or population are considered sufficient conditions by regulators worldwide to seed booming markets. WHAT THE F*** IS TRAI DOING?

Barring some early efforts, TRAI has been a helpless witness to the growing dominance of the Internet market by state . Access to network elements on cost-based charges is mandated in most successful Internet markets.

Internet telephony can be a boon for rural areas where most calls – with family members away to make a living in the city – are long-distance. TRAI wants all ISPs to be allowed to provide Internet telephony but in a restricted form – in which PCs may not call or phones. This makes ISPs uncompetitive with the big telecom players. TRAI, however, proposes that telcos and ISPs pay the same annual fees to the government. (I had mentioned the same thing in my earlier write up here)

Rather than correct the failure of markets, the intention seems to be to shrink them so that bureaucrats have less work monitoring them. (No wonder. Government of India staffs morons of all hues).

Poor access to Internet and is a sufficiently strong justification to amend the licence for cellular and unified access services to remove features, if any that cripple Internet and growth.

The law empowers TRAI to recommend changes on grounds of public interest and advances in technology. The government and TRAI must wait no longer. (Public Interest? That is not foremost on their minds either!)

Comments welcome. But surely, this is indeed a dismal scenario.  

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Could this "fee" being imposed, be, to make up for the shortfall in funds since they want to move to 74% FDI only, to make up the remaining 26% ??

It's very strange, what TRAI has recommended, almost like someone from BSNL/MTNL put a gun to their heads and said...

Now sing!

:O

Why doesn't TRAI have to explain their actions ?

Freedom of information etc.
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Agreed, but still there'z some good news for net enthusiasts---
http://economictimes.indiatimes.com/Broadband_to_g...

The government proposes to offer all citizens of India free, high-speed broadband connectivity by 2009, through the state-owned telecom service providers BSNL and MTNL. While consumers would cheer, the move holds the potential to kill the telecom business as we know it.

You have heard of free municipal broadband — many cities in the US have drenched themselves in wireless broadband connectivity which is freely accessible to residents. The idea is to boost economic activity in general. The government of India plans to achieve free broadband connectivity at a speed of 2 MB per second across the country, with a similar goal. Senior government officials expect to be able to achieve this goal spending only a portion of the corpus of the Universal Service Obligation Fund (USOF).

All telecom operators contribute 5% of their revenues every year to USOF. It is estimated that the unutilised sum from the USOF has touched Rs 9,194.12 crore by March, 2007-end.

The current technological trend is for voice calls also to shift to the internet, using voice over internet protocol (VOIP). The quality of VOIP calls, patchy to start off with, has been improving steadily over the years and by 2009, is likely to be as good as current analogue calls that establish a circuit between the calling and called parties. When that happens, revenue streams from calls would dry up and telecom companies would need to develop value-added applications to make money from the connectivity they provide for free or virtually free.

The department of telecom (DoT) will be taking a series of steps to make its plans for free broadband a reality. These include, using the USOF to set an extensive optic cable network across the country, opening up the long-distance sectors to further competition, allowing free and fair access to cable landing stations, permitting the resale of bandwidth, setting up web hosting facilities within the country and asking all internet service providers to connect to the National Internet Exchange of India (NIXI).

With international bandwidth rates in India being between two-to-five times higher than the global standards, the DoT will also go all out to break the monopoly of existing national and international distance players in a bid to induce cut throat competition in this sector. “India has only a handful of NLD/ILD operators while small countries such as Singapore and Taiwan have over 30 and 60 long distance operators respectively

Agreed, but still there'z some good news for net enthusiasts---
http://economictimes.indiatimes.com/Broadband_to_g...

The government proposes to offer all citizens of India free, high-speed broadband connectivity by 2009, through the state-owned telecom service providers BSNL and MTNL. While consumers would cheer, the move holds the potential to kill the telecom business as we know it.

You have heard of free municipal broadband — many cities in the US have drenched themselves in wireless broadband connectivity which is freely accessible to residents. The idea is to boost economic activity in general. The government of India plans to achieve free broadband connectivity at a speed of 2 MB per second across the country, with a similar goal. Senior government officials expect to be able to achieve this goal spending only a portion of the corpus of the Universal Service Obligation Fund (USOF).

All telecom operators contribute 5% of their revenues every year to USOF. It is estimated that the unutilised sum from the USOF has touched Rs 9,194.12 crore by March, 2007-end.

The current technological trend is for voice calls also to shift to the internet, using voice over internet protocol (VOIP). The quality of VOIP calls, patchy to start off with, has been improving steadily over the years and by 2009, is likely to be as good as current analogue calls that establish a circuit between the calling and called parties. When that happens, revenue streams from calls would dry up and telecom companies would need to develop value-added applications to make money from the connectivity they provide for free or virtually free.

The department of telecom (DoT) will be taking a series of steps to make its plans for free broadband a reality. These include, using the USOF to set an extensive optic cable network across the country, opening up the long-distance sectors to further competition, allowing free and fair access to cable landing stations, permitting the resale of bandwidth, setting up web hosting facilities within the country and asking all internet service providers to connect to the National Internet Exchange of India (NIXI).

With international bandwidth rates in India being between two-to-five times higher than the global standards, the DoT will also go all out to break the monopoly of existing national and international distance players in a bid to induce cut throat competition in this sector. “India has only a handful of NLD/ILD operators while small countries such as Singapore and Taiwan have over 30 and 60 long distance operators respectively

Could this "fee" being imposed, be, to make up for the shortfall in funds since they want to move to 74% FDI only, to make up the remaining 26% ??

It's very strange, what TRAI has recommended, almost like someone from BSNL/MTNL put a gun to their heads and said...

Now sing!

:O

Why doesn't TRAI have to explain their actions ?

Freedom of information etc.

Could this "fee" being imposed, be, to make up for the shortfall in funds since they want to move to 74% FDI only, to make up the remaining 26% ??

It's very strange, what TRAI has recommended, almost like someone from BSNL/MTNL put a gun to their heads and said...

Now sing!

:O

Why doesn't TRAI have to explain their actions ?

Freedom of information etc.

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