Home > Uncategorized > ISPAI agrues against the decision of increasing broadband cost

ISPAI agrues against the decision of increasing broadband cost

Definitely the telecom industry in India is not in a very good shape today. The recent action of increasing broadband costs  do not indicate determination of the government to reach the unreached. From this month of July, the Internet and broadband consumers will pay 7 percent more every month. This is because of increase in revenue share imposed on Internet Service Providers (ISPs). Worse still, the levy will increase to 8 per cent from April next year.

This news has not gone well with the Telecom insudtry, and the Internet Services Providers Association of India (ISPAI), the 155-member strong community of ISPs, on Saturday filed a petition before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), saying the government’s decision is “arbitrary and illegal.” “This 8 per cent levy will have a cascading effect, raising costs by 25 to 60 per cent for different ISPs, says ISPAI president, Rajesh Chharia.

ISPAI has argued that this will increase the cost for Internet users and defeat some of the key objectives of the National Telecom Policy, 2012, which was approved by the Cabinet just last month. The NTP 2012’s thrust is on provision of affordable and on-demand Internet and Broadband to citizens, particularly in rural India.

The petition said the government had violated several sections of law, including the TRAI Act, and subverted the due process of consultation that was necessary before changing the terms of licence such as the definition of Aggregate Gross Revenue (AGR). This was important, as a change in definition — even though provisional — would have an adverse impact on the ability of stand-alone operators to compete, especially with large telecos.

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