The Hindu Business Line : `STD, ISD services not competitive enough'

INTERNATIONAL as well as domestic long distance services in India are still not competitive despite increasing liberalisation of the telecom market, research firm Gartner has said.

This finding is based on a health check on telecom services Gartner has done for large enterprises with extensive networking requirements, a news release from the firm said.

Prices have come down significantly in the last two years particularly for voice services, but are still high compared with competitive quality and do not match up to best practices in terms of service quality.

Demand is growing at a tremendous pace due to the robust economic growth and the acceleration of IT outsourcing in India," said Ms Kobita Desai, Principal Analyst, Telecom, at Gartner. "But telecom is not keeping in step with large enterprise requirements."

Gartner has rated NLD and ILD services for both voice and data, the last of which includes leased lines, frame relay ATM, IP-VPN and IP transit. A full competition rating implies the presence of at least three major providers, limited indicates two or more major providers but limited competition, with no competition indicating a monopoly, virtual or otherwise.

Voice (in the NLD and ILD category) has been categorised in the limited competition classing, since competition is limited to access carriers (last mile providers) and not to the end users.

There is limited competition in leased line, but no competition in frame relay, ATM, IP-VPN, an IP transit, according to Gartner. "New operators are still rolling out their network infrastructure. In addition, their initial focus is on voice because it can generate substantial revenues immediately."India has taken big steps to liberalise its telecom market in the last two years. But many regulatory restrictions remain, which is delaying full blown competition," said Gartner. "The earlier the restrictions are removed, the earlier users will benefit."