VSNL likely to slash Net service rates

The Nigam which until a few days ago preferred to remain nonchalant about entry of ISPs has now devised a new reduced tariff structure for its Internet services.

Highly placed sources at the Mumbai headquarters of VSNL affirmed that a decision to this effect was taken during the board meeting of the Nigam held last week.

“The proposal of new reduced tariff has now been sent to the Telecom Regulatory Authority of India (TRAI) for its final approval,” sources at the Nigam told The Indian Express.

At present under its three-tier tariff structure of 100, 250 and 500 hoursfor transmission control protocol/Internet Protocol (TCP/IP) account, VSNL charges Rs 3,000, 6,500 and 10,000 respectively. The private ISPs on the other hand are offering the same service at reduced rates and with various options.

Without disclosing the actual proposed slash in the tariff, the sources said that the rate will now be made “more attractive” by taking into consideration the rates offered by private ISPs. The new tariff will certainly be more lucrative than all those in the market, remarked a top-notch official of VSNL.

When contacted K P Tiwari, chief general manager of VSNL’s Pune Gateway conceded about the deliberations on the revised tariff structure. However, Tiwari, denied that the action was being taken fearing competition from the private competitors.

“Given the strong position of VSNL in the country and its established infrastructure, there are remote chances of a threat from the private ISPs,” he remarked while expressing doubts about the survival of private ISPs in theInternet business.

While there is a marginal difference in the price structure, VSNL has taken a major beating from its private counterparts in customer service areas such as state-of-the-art software packages which the private ISPs are providing to their customers free of cost besides extensive training packages.

For example Satyam Infoways and WMINet, two leading private ISPs are providing their customers Rs 5,000 worth computer software and other accessory features free of cost for their Internet Service Options.

Besides additional facilities, as those provided by WMINet giving unlimited time slot for its customer to exhaust 500 hour account or high-speed access by Satyam Infoways, all are eating into VSNL’s clientele.

The country’s international telecom carrier which so far confined its customer services to merely sanctioning the account and allotting the logins to the customers, will now be focussing on these features also where the private ISPs have scored over it, said a senior official.