Broadband Blog

Ring Side view of Indian Telecom Circus

Broadbandblog: Daily updates?

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I have experimented with the tone and tenor of the write ups here. It’s impossible to update on a daily basis although RSS as a delivery mechanism is very powerful in it’s context; it’s easy to set up feeds to keep the updated regularly.

However, I personally feel that the sector as a whole has not evolved to a meaningful extent to report on the events. Vodafone has been dragged to the court. Airtel has botched up it’s offerings. 2G scam has caught up with its final actors. However, this is still the “tip of the iceberg”. A lot goes behind the scenes and some unlucky few get caught up in the swirl. Indeed, they are just minor fronts for the systematic loot.

Writing on all this is a chore. It’s pathetic to repeat the same thing ad-nauseum.

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Hence, I prefer to write when I get a sudden burst of “inspiration”. This blog has definitely morphed from it’s rigid confines of Indian Telecom to something more of a “digital narrative”.

I could also write on the operators elsewhere; unrestricted data does not flow uniformly. Yet, in most of the developing countries, scarcity is something that is engineered. It holds no relevance for most of us to know about what AT&T is doing with it’s T- Mobile acquisition. Further, we have distanced ourselves, not only from the , but also from reporting any sponsored events. I routinely get invitations (off and on) but they are mostly from clueless PR executives.

Daily updates is beyond the scope. Writing is a passion and needs to be stoked. Yet, there is no point in being pointless either!

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Skype: Microsoft acquistion and disruptive VoIP?

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New York Times has run a story on Skype‘s acquisition and

Image representing Skype as depicted in CrunchBase

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how would it be disruptive for the traditional cellular carriers.

A lot has been written skype’s acquistion (please see the related links below). Some people feel that it’s going to be good for the enterprise market, some feel that it is a useless deal with Microsoft bleeding millions of dollars everyday and a questionable “ policy”. Perhaps all these rationales look at the whole question piecemeal. But no one has the complete answer.

I have been interested in the VoIP market for long. I have written about it earlier extensively (here, here, here) in the past. Yet, Skype’s acquisition takes the cake.

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In an earlier post, I mentioned:

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TRAI called for implementation of Internet Telephony and Carrier Access Codes.

This was mandated much earlier way back in 2001; however, this was opposed by Bharti. had entered with the premise of “death of distance” and had made STD calls ridiculously cheap….. If Internet telephony is implemented in it’s present shape, it would

see present rates crashing down to a large extent.

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It would give a new lease of life to ISP’s like Sify and other fringe lunatics to scale up investments. I can foresee the entry of players like Skype as well as other SIP players which rely on open standards. It’s hard not to imagine the real gains to economy as a whole and it would benefit the adoption of setting up of WiFi hotspots on a larger scale.

In another blog post, I had written:

Govind says that can be used to carry calls which works out to be cheaper. Of course, I have explored these options way back earlier on; the current “competitive” scenario has resulted only in oligopolies and each new talk plan is basically a rehash of the others. Without disclosing upfront about the estimated monthly outgo, TRAI okays each plan without taking the consumer’s advantage in question. As a result we are fleeced to no extent. I really doubt whether can be used to carry out the calls-the investments are way too huge to justify parallel (and cheaper ) networks. Where would Bharti get it’s crores from?

Assuming that wifi becomes available all around, what is the guarantee that telcos won’t use all means to block the calls via Skype or any other internet phone? High usage charges would spike any consumer interest because in all probability it would be a “value added service” which by it’s own argument, can be priced higher. Unless of course, people set up their own small WiFi networks. A long shot indeed.

And in the winning entry for “Big Ideas Contest”, Skype (or Internet Telephony) was mentioned in passing; actually leveraging the low cost of routing international calls and passing on the advantage to the customers.

Teleconferencing would make it easier for people to people contacts; Gujarat has shown the way! Why can’t have something similar to Skype? (There is a move to have something similar in the GNU world where encryption would be based on open standards).

I don’t have any love lost for ; but as any corporation, it does what it has to do to survive. It’s a jungle out there and only the best survive by breaking through the clutter. There can be no easy answers to certain “defining moments”; we must wait for the answers to reveal themselves. The point here is that I have remained consistent in my assertions over the years and have called for opening up the standards instead.

Let’s look at what New York Times article has to say.

Wifi point to point

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The telecommunications is already in a state of flux as more people disconnect their home telephone lines in favor of cellphones. Now the carriers are looking for new ways to make money based on broadband and applications, rather than voice minutes. “Eventually, everything migrates to a data channel,” said Brian Higgins, an executive at Verizon Wireless who is developing products and services for the company’s high-speed 4G network. “We’re moving away from silos of communication to one where everything is combined together.”

This assertion is not valid but rather a corporate spin and . The reason is that landlines offer higher rate of data transfer and wireless networks can easily get choked. Similarly for networks being pandered about in India; main reason is to offer better voice minutes than spur on the data usage. Had there been any commitment for the same, the market would have reacted in a “bloodbath” to drop the rates and make it better to access the services.

Howsoever clueless these people are, data is definitely not on their minds. Hence, the question of “communication silos” does not arise at all.

But the Skype deal also signifies a larger interest in next-generation communications services. It is not just Skype that the wireless companies need to worry about. A bevy of mobile messaging applications, including WhatsApp, Kik, GroupMe and textPlus, allow people to send messages over data networks, sidestepping the cost of sending and receiving standard text messages.

Carriers already must deal with many new competitors in the communications game. Name companies like , and Google are making services available that traditionally only carriers could offer. , like Skype, offers ways to make free phone and video calls over the Internet. Apple lets owners make video calls.

The ultimate risk for the carriers, analysts say, is becoming “dumb pipes,” providing only the data connection and not selling any more sophisticated communications services themselves.

Agreed on this count. The newer generation services mentioned here are really disruptive. However, they have not achieved a critical scale; not to the level that carriers start blocking them actively violating “net-neutrality”.

So how would the companies react to such developments? Possibly by lowering expectations of supra-massive profits at our expense and by “signing up deals”. Although Value Added Services (VAS) remains a viable channel, I still have to see any “developments” in that; it remains a subject of a future post.

Carriers have responded to the shift toward digital communication differently. Some seek to leverage the new wave of services to differentiate themselves and gain an over competitors. , for example, recently united with Google to let its customers link their phone numbers to Google Voice, a service that rings all of a person’s phones and even Gmail when someone calls that person’s number.

However, these efforts are half hearted approaches to the present dispensation. Skype is important, yes, in the VOIP Space. With the development of GNU Public Telephony project on fast track, I am sure something would definitely strike in for alternative access opportunities like SIP phones coming in the mainstream.

I remain positive for a Vonage like service over landlines and I strongly back that company (please, it’s not an endorsement). For a fixed amount, it’s possible to call in major countries and is totally “place agnostic”. I can make unlimited international calls all across for a fixed monthly fees. Thats the real power of broadband for communication. Wireless is not cool because of it’s inherent limitations and POTS (Plain Old Telephone System) is STILL the best bet.

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BSNL Broadband: Details of RTI filed

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This is a non pdf version listed here:

16th December 2010

To
The Central Public Information Officer, ,
O/o General Manager ,
Bharat Sanchar Nigam Limited,

Sub: Information sought under RTI Act 2005 regarding the definition of , the prices and clarification of “limits” sought.

Dear Sir,

THIS INFORMATION IS SOUGHT IN THE PUBLIC INTEREST, AND THERE IS OVER-RIDING PARAMOUNT LARGER PUBLIC INTEREST TO BE GIVEN THE INFORMATION I HAVE ASKED FOR. This information is sought under the RTI Act 2005, and as the applicant I would retain the right to inspect or ask for certified copies of the relevant documents/records/informations.

Please explain the following:

1)What is the defintion of the term “Broadband”?

2)What is the source of definition? Please provide relevant documents to support your contention.

3)Since when BSNL has been offering Broadband services? Please mention the date and commencement of services in .

4)What are the various speeds being offered by BSNL?

5)What are the charges for various speeds being offered?

6)How have the charges been arrived at? Please provide AN EXACT BREAK UP of the costs incurred by BSNL to provide the broadband services for RESIDENTIAL CUSTOMERS. The break up should include the cost of the overheads, the costs involved in keeping the lines functional, the cost of the bandwidth or any other head as mentioned and filed.

7)What is the cost of Fibre To Home Service (referred to as FTTH) being offered by BSNL?

8) What is the break up of the cost of Fibre to Home Service? How has BSNL arrived at this cost?

9)Who sanctions the use of Optic Fibre for domestic usage? Under what conditions can a residential customer apply for the same?

10)What is the BREAK UP of the cost incurred by BSNL to provide over optic fibre? How has the cost been arrived at? Please give the relevant file notings regarding the same.

11)Who in your organization decides about the pricing of Broadband? Who gives the order for new plans to be introduced? How are the various plans AND the charges are arrived at?

12)What is the email id AND contact details of the concerned person who deals with Internet and Pricing of broadband?

13)Where does BSNL purchase it’s wholesale bandwidth from? What is the break up of the price paid to the company from where BSNL purchases it’s wholesale bandwidth?

14)Who in your organisation decides about purchase of the modems. Under which rules do you certify the modems? Where are the rules listed?

15)As per reports, a large percentage of your subscribers have surrendered their connections. How many connections were surrendered in the past one calendar year (2009-2010)? What initiatives have been taken by your company to sell Broadband on land line as a value added service?

16)Kindly provide the details of the spend for promotion of . How much of it was allocated to promotion of broadband over landline?

17)What is the meaning of the term “UNLIMITED Broadband” listed on the web site: (http://www.bsnl.co.in/service/New_BB_postpaid.htm)?

18)If the plans are unlimited, by natural corollary, the speeds should remain the same throughout the monthly billing period. Why are the speeds to be reduced (under the plans labelled as ULD- unlimited with differential speeds) after downloading a fixed limit of data as listed under various heads on this web site link: (http://www.bsnl.co.in/service/new_BB/BB_home_only_unlim.htm)

19)Who decides the “limit” of data to be downloaded in the “unlimited plans” and speed reduction after the same? What is the file noting/information related to it? Who has signed the official sanction for the same? Why has it been done? How has this figure of “unlimited” been arrived at?

20)Under the clause mentioned on the web page (http://www.bsnl.co.in/service/New_BB_postpaid.htm) it has been clearly mentioned that “For Broadband plans where bandwidth is or more, the uplinking will be maximum upto 768 kbps”. Why has it been done so? What is the justification to arrive at such a clause? How has the figure of 768kbps been arrived at?

21)What is the meaning of the term,” UNLIMITED WITH FAIR USAGE” (ULF) as listed on the web page (http://www.bsnl.co.in/service/New_BB_postpaid.htm). Who decides what is FAIR USAGE? Where has the term “FAIR USAGE” come from?

22)Is the term “FAIR USAGE” mandated by the regulator, Telecom Regulatory Authority of India (referred to as )? If yes, under which provision of ’s notification has this term been defined? What is the relevant file noting/ notification/ web site address under which BSNL has defined the term “FAIR USAGE”. If this term has not been defined by , who has authorized the use of the term “FAIR USAGE”? Kindly provide the details of the file noting/ decision taken to issue the term “FAIR USAGE”.

23) Under the web page (http://www.bsnl.co.in/service/bb_ftth.htm#q1) in section related to FTTH bandwidth “UPTO 1 Mbps” has been listed as Rs. 2999. Under the Broadband prices listed on web page (http://www.bsnl.co.in/service/new_BB/BB_home_only_unlim.htm), the price for 1Mbps (upto 15GB) has been listed as Rs. 1000/- (all tariffs listed are excluding the service tax).

I need to know :
a) What is the meaning of the term “upto 1Mbps” ? Can the speed vary from 128kbps to 1 Mbps? Who has defined the term “upto 1 Mbps”? Is this mandated by TRAI? If yes, where is the relevant file noting/notification/web address of the communication received from TRAI? Where has this been mentioned on their web site?

b) Why is there a price difference between the two services when the speeds i.e. 1 Mbps are same in both the plans? Kindly explain this in detail.

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