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Thursday, Dec 11, 2003

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Ease Net access

DIAL-UP INTERNET ACCESS has always been a frustrating experience for Indian homes and some low-end corporate users. The difficulty in establishing an Internet connection, the slow browsing because of sluggish download and the frequent disconnections are problems which users have endured for years; ironically, the problems are progressively worsening. Shockingly, but not surprisingly, 35-50 per cent of Internet users surveyed by the Telecom Regulatory Authority of India were highly dissatisfied with their Internet service providers (ISP). This make a mockery of repeated assertions by TRAI that major ISPs were meeting the supposedly strict Quality of Service parameters spelt out by it.

The time for TRAI to act is now. Despite the enormous potential for growth in Internet penetration, the growth rates have steadily declined from around 55 per cent in 2000 to single-digit levels now. The Internet subscriber base has stagnated around 3.5-4 million in the past year. If TRAI allows this problem to fester any longer, disenchanted home users will most likely migrate to cyber cafes. Though these cafes offer cheaper and faster Internet access, they would limit the broadbased access to the world wide web with all its implication for diffusion of knowledge within the members of a household. TRAI needs to evolve a strategy quickly. Given the high levels of international traffic accessed by users, it will have to pave the way for availability of abundant international bandwidth to the ISPs at competitive rates. This can help improve the overall customer usage experience. Also needs to be addressed are the issues of dial-up access at speeds higher than at least 28.8 kbps, and frequent disconnections.

Second, there has hardly been any innovation in structuring Internet packages for the past couple of years. Apart from reduced off-peak (or night) rates for dial-up access and flat-rate packages for unlimited usage, the ISPs have done little to woo users. It seems clear that newer and lower price points and enhanced service quality are needed to draw more customers. Home users have found the present mode of pricing the dial-up Internet access involving a fee payable to an ISP and also to the telephone company an unattractive proposition.

If India aspires to be a key player in a knowledge society of the future, access to the Internet will be an important determinant. India's ranking of 119 out of 178 countries in a recent Digital Access Index study by the International Telecommunications Union tells its own tale. Unless this ranking improves, the country may not sustain its competitive edge in the software and information technology-enabled services arena in the coming years.

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