Newsgroups: alt.nettime


	previous	workgroup	thread	next


Subject: <nettime> telco-politics in India
From: Patrice Riemens <patrice@xs4all.nl>
Date: 15 Aug 1997 11:57:54 +0200

* * * * *

To: nettime-l@Desk.nl
Date: Fri, 15 Aug 1997 11:39:18 +0200 (MET DST)
MIME-Version: 1.0
Content-Type: text/plain; charset=US-ASCII
Content-Transfer-Encoding: 7bit
Sender: owner-nettime-l@Desk.nl
Precedence: bulk

Hi Folks,

I'm cross-posting this piece from G-N-D because it gives some background
on the almost surealistic situation with regard to external
(tele)communication flows in India' 50est year of independence. You have
to realise that the state-owned VSNL, which has absolute monopoly in
running India's external telco-links (ie telephone/fax, telex, and what
remains of the telegraph system) is also the almost sole provider of
Internet access to the non-institutionnal sector. This was one the main
subject we discussed in a telephonic interview with Goan Internet wizzard
Boogie Viegas in Kassel (documentaX, HybridWorkSpace, the Bandwidth
programme) (http://www.icf.de/workspace)
cheers,
patrice
.........................................................................

> goa-net-digest Tuesday, 17 June 1997 Volume 01 : Number 600
>
>
> ----------------------------------------------------------------------
>
> From: Marlon E Menezes <menezes@coewl.cen.uiuc.edu>
> Date: Mon, 16 Jun 1997 17:09:23 -0500 (CDT)
> Subject: report slams monopolistic VSNL
>
> From: jit <abd@csar.com>
> Newsgroups: soc.culture.indian
> Subject: VSNL's lies on international calling rate
> Date: Mon, 16 Jun 1997 12:50:23 -0700
>
> [Image]
> [The Economic Times]
> SATURDAY 14 JUNE 1997
> [Opinion]
>
> InferencesKISHORE JETHANANDANI
> VSNL's lies
>
> Editorial writers have had to wrestle with information and
> reports inadvertently or consciously biased by its source.
> The Internet has changed matters as it enables a relatively
> low-cost cross-referencing. On the issue of international
> accounting and settlements, most reporters would have few
> options besides contacting the VSNL for information on the
> topic. Hence, the myth that VSNL's squabbles with the FCC
> of the US are about conflicting national perspectives on
> policy.
>
> One has to only scan the web-site of a neutral body like
> International Telecommunications Union
> (www.itu.int/newsroom) as well as its annual World
> Telecommun-ications Development Report (WTDR) to conclude
> that FCC's insistence on lower accounting rates is an
> inevitable consequence of falling prices driven downwards
> by deregulation. VSNL's astronomical wholesale rates or
> accounting prices are unsustainable since incoming traffic
> from the US far exceeds the reverse flows. According to
> figures published by WTDR,the surplus of USA's outgoing
> over incoming traffic to the world increased from 52
> million minutes in 1975 to 8.6 billion minutes by 1995.
> There has been a concomitant fall in its accounting rate,
> which fell 43 per cent between 1990 and '95. Increasingly,
> the disparity in tariffs has encouraged arbitrage, all
> benefiting US carriers.
>
> Similar imbalances are inevitable in other countries home
> to competitive telecommunications such as Britain and New
> Zealand. The ITU web-site suggests that these countries
> will join the US to create zones where they agree to lower
> tariffs denying others the same benefit.
>
> It should, therefore, come as no surprise that telephone
> tariffs are the single most issue engaging the attention of
> the world telecommunications community. Besides the FCC,
> the ITU and OECD have prepared discussion papers suggesting
> alternative methods of pricing agreed between vendors
> independent of bilateral agreements between nations.
>
> VSNL has, at long last, conceded a marginal ten per cent
> reduction in the tariff rates having realised that its
> traffic will only increase.
>
> This is doubtful since the costs of competitors in
> deregulated markets, such as the US and Britain, are less
> than a fourth and they will probably match the price cuts.
> Moreover, the domestic exchanges in metropolitan areas are
> already working to capacity as is indicated by chronic busy
> tone during peak hours.
>
> VSNL has sought to assiduously obfuscate the substantive
> issue that its monopoly over international communication
> till 2004 is just not defensible in the current global
> technological and regulatory context. India will not be
> able to lower its tariff to the desired extent unless
> competition drives down the costs as well and improves the
> quality.
>
> Moreover, the data circuits of the Internet have already
> been used to route voice traffic. As the quality of
> telephone calls over the Internet improves, so will their
> frequency. In the future, low-orbit satellite communication
> will facilitate anytime-anywhere personal telephones that
> can by-pass national carriers. VSNL, in other words, will
> be left defending a fort nobody wants.
>
> At the least, the Government should permit the entry of
> independent Internet Service Providers without the rider
> that their traffic be routed through VSNL's network.
>
> Technically, the government will not breach its promise to
> maintain VSNL's monopoly in international communication
> till 2004 if it allowed private V-SAT companies to route
> Internet traffic through their networks. Worldwide, telecom
> infrastructure and services are viewed as distinct
> businesses; the latter is generally governed by more
> liberal policies.
>
> As the volumes of electronic commerce grow, the parties
> interested in very low costs of trade over information
> highways will queer the pitch for publicly owned telephone
> companies. Potential investors in VSNL are realistic enough
> to realise that its long-term viability is at stake if it
> is not exposed to global competition now. They can well be
> taken into confidence before the final green signal to
> allow entry of private companies in international
> communication.
> __
> Marlon Menezes (217)244-6852,333-6466(w)
> 1304 W Green St. (217) 328-4353 (h)
> Urbana, Il. 61801 e-mail: menezes@uiuc.edu
> U. Of Illinois, Materials Science http://www.students.uiuc.edu/~menezes/
>
> ------------------------------
---
# distributed via nettime-l : no commercial use without permission
# <nettime> is a closed moderated mailinglist for net criticism,
# collaborative text filtering and cultural politics of the nets
# more info: majordomo@icf.de and "info nettime" in the msg body
# URL: http://www.desk.nl/~nettime/ contact: nettime-owner@icf.de