The Hindu Business Line : BSNL, MTNL monopoly in Net services alleged

PRIVATE Internet service providers (ISPs) have accused Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) of misusing their position as telecom companies to monopolise the Internet market in the country.

Alleging that both the public sector telecom giants were taking unfair advantages of their position to muzzle competition by bundling their Internet and telecom services and forcing unequal interconnect terms on private players, the ISPs have sought the intervention of Telecom Regulatory Authority of India (TRAI) in the matter.

According to the ISP Association of India (ISPAI), BSNL and MTNL, whom 90 per cent of the country's Internet subscribers depend on for dial-up access, have consistently refused to meet ISP's need for fair interconnection terms. "The situation is made much worse by the fact that BSNL and MTNL are now also ISPs themselves and use the access to the PSTN as a device to hurt competitors," ISPAI said in a letter to TRAI.

ISPs say that though they have to depend on the incumbent telecom operators for access to PSTN and leased lines, they also compete with them in the business.

"ISP's prices are today being undercut by PSTN operators who, unlike ISPs, are able to bundle their Internet offering with the telephone access," ISPAI said.

The telecom operators can provide joint billing for telephone and Internet services and their customers can use their own phone numbers to access the Internet, while such options are not being made available to private ISPs, the association alleged. "Such practices, frowned upon by many regulators elsewhere as anti-competitive, have led to a rapid decline in the latter's market share," it said.

ISPs alleged in the letter to TRAI that BSNL and MTNL continued to cross subsidise their Internet business from telecom revenues and undercut competitors.

"There is urgent need for TRAI to demand accurate estimate of costs incurred by BSNL and MTNL to connect Internet subscribers. These costs should not be confused with price charged to customers for voice calls," ISPAI said, urging the regulator to ask BSNL and MTNL to separate Internet business from telecom services.

ISPAI pointed out that the growth of Internet in the country has been worse that many comparable countries. Nearly 200 ISPs have either closed down or surrendered their licences.

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BSNL, MTNL monopoly in Net services alleged — Private ISPs seek TRAI intervention