Internet Service Providers in Gujarat are angry with the Bharat Sanchar Nigam Limited (BSNL). Gujarat boasts of around thirty odd ISPs, probably the highest in the country. However, the scenario does not look too good for the industry.

Even as ISPs across the country are crying foul over the alleged step-motherly treatment accorded to them by the BSNL, ISPs in Gujarat are particularly annoyed with the fact that they do not get a share of the revenue unlike STDs/ISD/PCO owners, cell phone companies and paging operators.

Explained SN Khemka, president, Internet Service Provider’s Association of Gujarat, "To avail our services, consumers use BSNL’s phone lines that generate revenue for them to the tune of Rs 25 per hour. However, thanks to the price slashing and competition sustaining policies, the ISPs earn about Rs 6 per hour. Even if we assume we have 10,000 customers who have brought in a minimum 100 hours from us, the BSNL is assured of Rs 250,000 without having done anything".

If the ISPs want their share, then the demand should be considered, he said. A couple of ISP associations are, now, coming together in a fresh bid to approach the BSNL with their revenue share demand. Presently, BSNL gives about 60 percent of the revenue collected on long distance calls, 40 percent on short distance, about 20 percent on paging services and a certain percentage to cellular operators. But there is no agreement between ISPs and BSNL on revenue sharing.

The association has been asking for this arrangement, since licenses were being discussed about two and half years ago. Once the licenses were issued, they got busy with operations. However, the going is now tough, with most ISPs hitting rock bottom. The association members believe that this could be a good way to earn returns and sustain themselves.

With the ISP scenario becoming bleak, revival in the form of incentives appears to be one of the solutions. Khemkar argued that no one could survive on the ISP business alone. This could only work in the US and UK. He believed that if the BSNL granted some concessions, these could be passed onto the consumers.

The Internet Service Providers’ Association of Gujarat has requested for quarterly billing for E1/R-2 lines. The association members, currently, pay an advance for one-year E-1/R-2 lines to the telecom circle and have urged the chief general manager of the circle to accept quarterly advance payment in lieu of an yearly advance.

SN Khemka pointed out that telephone subscribers paid the telecom circle rent in advance for two months whereas for the same telephone connections (1E/R2=30 telephones), they were required to pay an advance for 12 months. He said that they comprised the bulk of the consumers of the BSNL, who generates revenue for them on their investment and infrastructure. The association has demanded preferential treatment in terms of payment.

Khemka explained that, with the recession in the industry having affected the cash flow, it would be very difficult for them to pay yearly payments in advance for E1/R2 lines. The association has urged the BSNL to accept a quarterly advance for E1/R2 lines.

Nanda Kasabe,
Cyber News Service