Jalan Panel For End To Vsnl Monopoly On Internet Gateways By

The Bimal Jalan Committee preparing guidelines for entry of private Internet service providers (ISPs) is likely to recommend the use of earth stations at seven software technology parks in the country as a second set of international gateways for Internet and high-speed data connectivity.

Sources ruled out allowing non-government players to set up Internet gateways. International gateways are facilities through which all traffic voice, data and Internet are routed to and from a country. These comprise routing and switching systems and satellite earth stations (dish antennas) when the medium of transmission is satellite-based.

The proposal, if accepted by the Union government, will end Videsh Sanchar Nigam Ltd (VSNL)s monopoly over international voice, data and Internet services. VSNL has four gateways and seven satellite earth stations in the country.

A final decision will be taken after a green signal from a committee comprising A V Gokak, secretary, department of telecommunications (DoT), Shymal Ghosh, secretary of department of electronics (DoE), and heads of security agencie looking into the national security aspects of a second international gateway.

The Jalan Committee is also likely to allow ISPs in India to lease data circuits from international telecom carriers like AT&T, British Telecom, Sprint International to connect to Internet backbones. Until now, all users in India have to lease circuits provided by VSNL, which may be its own or rented from international carriers.

According to ISPs, the annual rentals charged by international carriers are as less as a quarter charged by VSNL.

The latter currently charges some Rs 850,000 for a 64 kbps circuit. It has proposed a 30 per cent drop in the charge to Rs 600,000.

Even then (at lower charges), the rates abroad are much lower, the chief of a potential ISP said.

The recommendation to allow earth stations of software technology parks international connectivity will not violate the governments commitment to the World Trade Organisation (WTO) that it will review its monopoly over international telecom services only in 2004.

The government will retain control over such international services because the Software Technology Parks of India is a registered society under the administrative control of DoE. The parks are government units and hence the earth stations are its property, a source said.

Situated at seven centres Pune, Bangalore, Bhubaneshwar, Hyderbad, Noida, Gandhinagar and Thiruvananthapuram the software technology parks have satellite earth stations which are not being utilised fully. The earth stations at these parks are the only such facilities existing in India, apart from that owned by VSNL.

VSNL being the sole gateway provider for ISPs is seen as posing a hurdle to faster spread of Internet services in the country. It is feared that Indias international telecom carrier will not be able to handle the traffic generated by ISPs. The idea is to allow all ISPs direct access to Internet (transmission) backbones abroad so that bottleneck created by VSNL gateways does not slow down access (to the Net), a telecom source said.