VSNL SLASHES INTERNET TARIFFS, UPGRADES SERVICES

Videsh Sanchar Nigam Limited, the only national gateway for international connectivity, and the only commercial Internet service provider in India, seems to have finally lent an ear to users complaining about inefficient, unprofessional and expensive services. In fact, in a recent move VSNL has substantially reduced prices of is Internet services, encompassing dial-up lines for professionals and leased lines for corporate. Subscribers will also be relieved to hear that VSNL is promising to start end user support services. In an exclusive interview with IS computer world assistant editor, Osama Manzar, VSNL’s director-development, Raj K. Gupta, revealed VSNL’s game plan for the future.
It’s already been nine months since VSNL announced its Internet services. Customers however don’t appear too happy. What is VSNL doing about it?
Gupta: We are now offering a whole lot of new things. The dial up lines where people dial in and access our Internet server have been increased from 24 to 96, in New Delhi. In Bombay we now have more than 150 lines, and in Bangalore we have about 70 odd lines. We have significantly increased our dial-up lines so that subscribers are not hampered in accessing the Internet. All this was done as we were receiving a number of complaints.
Are you doing anything to overcome the slow response problem?
Gupta: Yes, we have increased the international connectivity of 2 Mbps capacity, which is 30 channels of 64 Kbps from New Delhi. We have a similar capacity being offered from Calcutta, Madras, and Bangalroe. From Bombay we have an international bandwidth of 3 Mbps. Therefore, in totality we have about 10 to 11 Mb of capacity. And this capacity, at the moment, is only for 7,000 customers, which is amazingly high availability for such a small number of users.
To give a comparative situation, Singapore is providing services to about a lakh of customers through an international bandwidth of only 6 Mbps. In Australia, for 6.5 lakh customers, the available bandwidth is again only 6 Mbps. In our case, 7,000 Internet subscribes are availing the international capacity of more than 10Mbps. Today, nobody can complain that the international lines are choked up and that there is any problem in getting through.
Any solution to the last mile problem?
Gupta: We have now introduced high speed modems. We had a lot of complaints from our subscribers saying that other countries provided 28.8 Kbps modem speed, so why not VSNL? As a reaction to this complain, we have installed the 28.8Kbps modem. But I am afraid all customers may not be able to avail the 28.8Kbps speed, because the speed also depends on the connection from the client’s desktop to the local telephone exchange. Also, not always does the server support total connectivity. Besides the speed at the user’s end, even if he accesses the 28.8Kbps modem, depends on a variety of factors such as the exchange from which the client’s telephone is connected, the quality of modem, etc. I cannot guarantee that all subscribers will transact their business at the speed of 28.8 Kbps. This was the best we could do. If the line doesn’t support 28.8Kbps, the modems will ultimately fall back to 14.4 Kbps, or 9.8Kbps.
Do you have any plans for World Wide Web services?
Gupta: Yes, we have taken  step towards providing Web servers, where a subscriber can put information from Indian corporates on the Web has been put on servers located outside the country. We have set up commercial Web servers in Bombay and New Delhi. Our role however, is confined to providing the hardware which will host the Web pages of the clients.
As far as the creation of Web pages is concerned, for the moment, the responsibility will lie with the client.
What are the tariffs for the web page hosting?
Gupta: The tariff for hosting one page is Rs 5,000, and for one company or individual not less than four pages will be hosted. In additional Rs. 1,000 will be charged per visual.
However, at the moment, the Web service is still a pilot project and testing is going on the pilot server. The commercial server will be installed within a month or so.
Can you give us the total break up of your users?
Gupta: We do not have the total break up, but we have about 7,000 customers. So far, the majority of the connections have been taken by professionals and individuals. There are, however a few corporate houses that have taken the 64 Kbps leased lines for corporate wide Internet usage. But they have not come forward in a big way to take dial-up connections. Probably they still have a notion that the Internet is a waste of time.
Any plans to cut the tariffs?
Gupta: Oh yes, we have already done it. Besides, we have finally begun the student category service, and increased the usage time from 250 hours to 500 hours, with a dial-up connection on a 2.4Kbps line. For professionals, we will charge Rs. 5,000 for 500 hours for a shell account, and Rs.12,000 for a TCP/IP account. In fact we have doubled the usage time without increasing the price.
Haven’t you slashed the price for corporate users?
Gupta: Yes, we have. However, as of now, there are only two categories-students and a general section. There is no third category, as far as the dial up lines are concerned.
We have also slashed the price for leased lines. For instance, our yearly charges for the 64Kbps line will be Rs. 12 lakhs, instead of Rs. 15 lakhs. For educational institutions, we have a special offer of four lakh rupees for a 64Kbps leased line.
For a 128Kbps leased line, the charges have been fixed as Rs. 18 lakhs. And for the 2Mbps pipe, the yearly charge is one crore rupees.
Aren’t you expanding the Internet services to other smaller cities?
Gupta: We are takin to DoT to pull more nodes in the other cities like Jaipur, Trivananthapuram, Cochin, Jallandhar, Kanpur, Chandigarh, Ahmedabad, Lukhnow, and so on. In fact, DoT has identified 27 cities to put nodes in the next phase. At the moment, the DoT has put nodes in four metros and in Pune and Bangalore.
Technically speaking users can access the Internet through I-Net. The only hitch here are the charges. The subscribers that are connected to the I-Net are also supposed to pay for Internet charges if they are accessing through VSNL. What we are talking to the DoT is about the fact that for the Internet, conventional charges are too prohibitive, What is required is a special tariff, only for Internet traffic.
Unfortunately, the bandwidth of 1-Net is merely 4.8kbps. But I-Net is upgrading its systems, and soon will be able to provide better infrastructure.
Do you have any plans to become an Internet service provider, in order to allow more ISPs under VSNL umbrella?
Gupta: Currently what is permissible, as per the DoT’s licensing rules, is that you can take high-speed lines 64Kbps, 128Kbps or 2Mbps-connect them to your LAN, and serve your own user group. You can’t resell the service to the public. As a company you can take such lines to set up a department. For instance, we have given a 64K line to hotel Maurya Sheraton to start its Cyber Club.
Similarly, we have given a 384Kbps line to NIC, who is serving its customers. We have also given a 64K line to NIIT for its corporate network. Therefore, below 2Mbps, you can take a line of any thickness for your corporate wide applications.
Is there any possibility that VSNL will go for multiple ISPs under its  umbrella?
Gupta: I can’t say that we will not. We are quite willing to become a larger umbrella alongside the DoT, and put more nodes to cove a larger mass.
What are your views on internet working different networks existing in India?
Gupta: We are certainly quite open to the idea. If they comes to us, we will love to connect them through our network. Because, for customers it should be a case of seamless accessibility.
But DoT doesn’t allow two networks to be connected to each other.
Gupta: I have no comments on the regulations per se, but technically, two networks cannot be connected to each other, as they all are proprietary. However, I  certainly feel that we should have a national backbone for the larger interest of the people. And for the national connectivity you don’t have any option except to connect to DoT’s national backbone, whether you like it or not. According to the DoT’s regulations only DoT can provide the national backbone.
VSNL has a monopoly over Internet services. Would you like this to continue or would you prefer it if more players come in?
Gupta: I have no comments on that. You have the experience of E-mail service providers, and the state of satisfaction of the E-mail subscribers before you. I leave it to you to decide whether more players should be allowed to provide Internet services. What I can say is that we have been given a job and we are trying to meet the demand in a way that we do the country proud. We have been successful in providing international telephone connectivity on one-dial. In fact people say that they get international numbers much faster and more easily than local and domestic numbers. We want to provide the same efficiency in the Internet and satellite based services. We have a vision to become a major regional player too.
And DoT is always there to help you achieve your ambitious visions?
Gupta: Yes, we are getting all possible support form the DoT. And we are successfully delivering the goods.
VSNL is the gateway for various services in India. It is also a value-added service provider in some services, which is violation of the MRTP.
Gupta: We are working towards that end. We probably will be creating a subsidiary company. In any case, we are keeping a totally different account for our value added services.