Internet services — VSNL, MTNL on war-path

"Free internet access can happen in India today, if the access charge is shared," Kumar said. Drawing a parallel with MTNL’s earlier plan to introduce free phones for itsinternet subscribers, he said if internet tariffs were being subsidised by dial-up charges, the same benefits should be available to other ISPs. TRAI had intervened when MTNL planned to introduce free phones for its internet subscribers, making it compulsory for the discount to be offered to subscribers of other ISPs as well. "We can also cross subsidize but we are not doing it as a matter of principle," he added.

He termed the unlimited net access scheme launched by MTNL for Rs 6,000 a year, as unsustainable. "Two or three people can come together and opt for this instead of the 500 hour package," Kumar said, "The next area of attack is the dial-up charges which are the highest today."

With regard to the recent government decision allowing ISPs to take bandwidth on foreign satellites, he said cost of capacity would be lower as compared to Intelsat. VSNL has also asked the government for permission to operate on foreign satellites. He admitted VSNL would be impacted, but only marginally, by the decision.Currently, all ISPs take bandwidth from VSNL.

VSNL plans to become more active in the web-hosting and e-commerce segment and is likely to announce its new "Strategy for the Millennium" in some days. Others who spoke at the conference on "How to Make Money on the Net" were National Stock Exchange managing director R H Patil, Hewlett Packard India president Ganesh Ayyar, Cyrus Guzdar of AFL, Shekar Dasgupta of Oracle India and Pravin Gandhi of MAIT.