VIJAYAWADA: In the face of intense competition from private internet service providers (ISPs), officials of the Bharat Sanchar Nigam Limited (BSNL) have stressed the need for reducing tariff for unlimited broadband connections.

This comes as a response to the attractive packages being offered by private ISPs, who promise high speed internet service at Rs. 500 a month.

BSNL General Manager P. Balagangadhara Rao has written to the Chief General Manager of BSNL, Andhra Pradesh Circle, explaining the situation in Vijayawada.

He has underlined the need for reducing tariffs to retain existing customers and also to attract new ones for the unlimited broadband connections.

The competition is intense - particularly in unlimited broadband segment.

Market dynamics

"We are conscious of the market dynamics. Given the growing number of players, there is a need to reduce tariffs sooner than later," Mr. Rao said.

A private ISP has come out with an attractive offer of unlimited broadband at Rs. 500 a month in the city recently.

But the customers have to subscribe for the landline connections of the particular company so as to access the broadband connection. It costs each customer up to Rs. 3,400.

The BSNL officials say that if the private providers charge additional amounts, the BSNL will not stand to lose anything in the near future.

What keeps the BSNL officials on toes is the entry of a cable network into the broadband scene.

It also offers unlimited broadband service at just Rs. 500 a month.

If there are no additional charges towards installation of customer premises equipment, the cable network is expected to have an advantage over existing players.

It is yet to be found out whether the cable network is using existing cable or laying another cable exclusively for broadband services.

Backbone route

The BSNL's strength of `backbone route' is unquestionable and it is still a moot question whether private providers have any mechanism to ensure consistency in bandwidth.

If many customers work on the net at the same time, it may reduce the download speeds.

It is going to play a major role in meeting the demands of customers in the days to come.

Internet connections

As of now, the BSNL has given 4,000 internet connections in the city. Of these, about 250 connections are in the unlimited Rs. 900-broadband segment.

There are 30-odd connections in the Rs. 9,000-business broadband plan. A good chunk of the internet connections are also working in the Rs. 500 and Rs. 250 plans.

The BSNL's Rs. 900-plus plan includes installation of a land phone exclusively for unlimited broadband plan. It is this segment that is going to witness greater competition from private providers in the days to come.

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