The Hindu Business Line : ISPs cry foul over BSNL `bias' on leased line charges

INTERNET Service Providers (ISPs) have accused Bharat Sanchar Nigam Ltd (BSNL) of adopting a "blatantly arbitrary" and "anti-competitive" stance as the telecom major has not extended its reduced leased line charges to other service providers.

Though BSNL has slashed domestic leased line charges by 60 per cent for its subscribers, the new rates do not apply to other service providers, who also take leased lines from the public sector telecom major.

Cut up with this move, the ISPs have now approached the Telecom Regulatory Authority of India (TRAI) seeking redress.

"This has been specifically done so that BSNL, which provides leased line services to competing service providers, and also deals with end-consumers at the same time, can gain unfair advantage of its facilities over the competitors," the ISP Association of India (ISPAI) said in its submission before TRAI.

ISPs claim that there is no rationale for excluding the service providers from the discount structure made available to others and such a move by BSNL is against principles of non-discrimination and fair practices.

ISPAI alleges that BSNL is misusing its position as the incumbent basic service provider and its move would seriously impair competition and deny benefits to a large number of consumers.

It also stated that even after the proposed reduction, BSNL's leased line charges are high and they need to be scrutinised. "The leased line tariffs continue to be way above the costs, especially if one considers the higher capacities (e.g. 34 Mbps, 45 Mbps and 155 Mbps)" the association said.

An ISP has to depend on other authorised service providers to build its transmission network as per the license conditions. The exclusion of service providers from the reduction in leased line charges will seriously affect competitive environment, ISPAI said.

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