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Internet Cost to Rise 25 to 60% in India - ISPs

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Honourable Telecom Minister of India - Kapil Sibal

As you may recall, we had reported that the govt plans to raise taxes on internet usage by 7-8%, now the Internet Service Providers Association of India (ISPAI) president, Rajesh Chharia warned that the 7-8% is only at the base level, by the time the costs are passed on to the customer the costs will actually rise by 25 to 60% with no improvement in service.

On Saturday the ISPAI filed a petition before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), saying the government’s decision is “arbitrary and illegal.” While the government can alter licence conditions, they must keep peoples interest in mind. In this case, none of the three factors which can prompt a change in licence terms — the public interest, proper conduct of telecom or national security concerns — can be legitimately invoked to justify hiking the cost for Internet users.

However it is questionable if the TDSAT can do anything in this matter as it does not have the jurisdiction to intervene in disputes between the ISP's and government. At the most this move could delay the rise in internet tariffs.

Source : The Hindu : Sci-Tech / Internet : Plan to hike Internet tariffs challenged

Re: Internet Cost to Rise 25 to 60% in India - ISPs

Excellent. Just what I was looking for. More expensive internet without any improvement in service. Might as well slash the FUP limits by half while we are at it. Then we will have a complete Cluster ****

Re: Internet Cost to Rise 25 to 60% in India - ISPs

Please see this press release for more details of ISPAI's position : http://www.ispai.in/ispai-view/pressreleaseview.php?pressReleaseId=8

Press Release :

GOVT. IMPOSED NEW LEVIES ON INTERNET / BROADBAND - CONTRADICTS OBJECTIVE OF NTP 2012 - AFFORDABILITY & RURAL BROADBAND

1. It will be disaster for the penetration of Broadband in the country which is already in the doldrums. Was not able to achieve Target of 40 Million by 2010, in doubt to touch 175 million by 2017 and 600 Million by 2020.

2. It is not mere 8% but will have cascading impact, which will increase the cost from 25% to over 60% depending upon ISP to ISP.

3. It is against the Main objective and spirit of National Telecom Policy 2012 which states “affordable and on demand Internet/Broadband connection to citizen of India”

4. Main thrust of Govt. is for Rural Broadband penetration, Rural people finds present rate non affordable what about after imposition of new LEVIES.

5. PENALTY for ISP segment (revenue 7500 Crores as per TRAI) while REWARD to Other OPERATORS by leaving IP 1 sector (revenue 25000 crores as per TRAI) without imposing any LEVIES, while TRAI advised LEVIES to both sector for level playing field and in NTP recommendation.

6. ISP penalized for Government's failure to audit telco's arising out of the differential revenue share payable by them against their multiple licenses, leading to the alleged underreporting of revenue.

7. Imposed TAX without even analyzing the financial position of ISP segment.

8. POLICY will remove competition by KILLING 90% ISP serving to niche smaller town and rural area - READY to FACE MONOPOLISTIC INTERNET PRICES thus making INTERNET SERVICES for privileged.

Best Regards,

President
Rajesh Chharia
+91 98110 38188[/INDENT]

Re: Internet Cost to Rise 25 to 60% in India - ISPs

:flamethrower: Kapil Sibal

what the .. ?
First CCE , then IIT and now internet !
THIS IS MADNESS !!!

how does 7-8% levy cascade into 25-60% hike for customers..

we need some telecom type reforms done..

Re: Internet Cost to Rise 25 to 60% in India - ISPs

If implemented this will be a death blow to internet in India !!
We are already one of the lowest earning and highly taxed people !!
I say lets move out ;)

Re: Internet Cost to Rise 25 to 60% in India - ISPs

The higher cost is justified by the additional hardware and manpower required by Internet Service Providers to police the internet and make it safer for its users. Those things definitely do not come cheap.

Re: Internet Cost to Rise 25 to 60% in India - ISPs

Policing the internet isn't justified.

So the price isn't either.

A 25-60% hike would see my broadband cost 2500-3200 instead of 2000 per month. That would be #FML .

Re: Internet Cost to Rise 25 to 60% in India - ISPs

Good...more fuel to kick out this Govt. for good...what a plunder & blunder they made of this good nation !

Re: Internet Cost to Rise 25 to 60% in India - ISPs

Large population , large tax , little in return

Re: Internet Cost to Rise 25 to 60% in India - ISPs

Balle Balle ! I love my India & the government even Santa doesnt provide these many gifts ! Our telecom minister do look like bad Santa anyways ! :D

Re: Internet Cost to Rise 25 to 60% in India - ISPs

Quote:

Originally Posted by dexterboygenius (Post 763916)

how does 7-8% levy cascade into 25-60% hike for customers..

I also didnt understand this logic. I think they are exaggerating to gain sympathy for their cause but I must confess that I am not aware of the details of how this works. Part of the increase will be because the increased amount of manpower and time spent on the accounting, bureaucracy and red tape that this will give rise to. Still a 8% should not lead to a 25% increase.

I do know that in trade and retail this cascading effect works. A small price increase at the factory level does lead to a major increase in prices at the retail level.

Re: Internet Cost to Rise 25 to 60% in India - ISPs

Bloody congress..
Sibal implementing his shitty ideas like hiv aids:caution:

Re: Internet Cost to Rise 25 to 60% in India - ISPs

Quote:

Originally Posted by hitesh12 (Post 763908)

:flamethrower: Kapil sibal

what the .. ?
First cce , then iit and now internet !
this is madness !!!

this is indiaaa

Re: Internet Cost to Rise 25 to 60% in India - ISPs

Guys, shall we contribute some money and put a BOUNTY on Kapil Sibal's head?? =D