Presentation to Chairperson, TRAI on Key Issues of ISPs by ISPAI Internet Service Providers Associat

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Presentation to Chairperson, TRAI on Key
Issues of ISPsbyISPAI Internet Service
Providers Association of India www.ispai.in
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Initiative by ISPs

• Introduced and promoted the concept of Cyber
  Café / Public Kiosks in the country.
• Introduced, development and promoted VPN
  Services for the Corporate in the regime of high
  cost of Bandwidth.
• Started Internet Telephony Services at lower
  prices.
• Played vital role in spreading and educating
  people /corporate about the usage/benefit of
  Internet.
• ISPs brought competition in the Industry
  resulted in low prices good services/ support.

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Why Stand-alone ISPs

• Focused and local service providers close to
  the customer. They are like your neighborhood
  friend.
• Played vital role in spreading and educating
  people/ corporate about usage / benefit of
  Internet.
• ISP brought competition in the industry
  resulted in low prices good services / support.
  
• Focus on value added services Can help in
  spreading the e-Learning, tele / e-Medicine,
  E-governance applications to the remote / tier C
  D cities.
• It is establishment that Broadband Services has
  multiplier impact on the growth of GDP
  improvement in the quality of life of the people.
  Credit goes to ISPs.

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Key Issues of ISPs

• Broadband as Key Infrastructure
• Broadband should classified as Key
  Infrastructure
• Income Tax benefits u/s 80(I) (A) should be
  allowed to ISPs and other licensees authorised to
  provide Internet/Broadband.
• Cyber café/ public kiosks should be exempted
  from the Service Tax as they are helping in
  spreading the usage of Internet Broadband in the
  places where it is difficult to afford
  PC/Internet.
• Support from USO Fund
• Must be provided to All Operators / Service
  Providers offering Broadband Services to Rural
  Areas
• Limiting the same to voice telephony alone mean
  higher dependence on subsidiaries .
• Let broadband network offer a cheap voice service
  to rural people along with other
  services/applications.

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Key Issues of ISPs

• Bandwidth Prices
• International bandwidth and domestic leased lines
  contribute about 60-70 of the cost in the
  provision of Broadband.
• Though prices for Intl as well as Domestic
  leased lines came down substantially, however, it
  is still high comparing to many countries where
  broadband penetration is quite high.
• Check on Predatory Polices Practices
• Time to time ISPAI has been taking up the matter
  with TRAI about the predatory policies and
  practices by Incumbent as well as other UASL
  operators.
• ISPs should be treated as bulk customers and be
  given whole sale prices. TRAI should ensure and
  keep an eye on the same.
• Incumbent and other UASL operators should not
  deny provision of any resources to ISPs just
  because some resources have been provisioned from
  other service provider.

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Key Issues of ISPs

• Internet Telephony - Level Playing Field
• ISPs Vs foreign service providers such as Net 2
  Phone, Vonage, Dialped, Impetus, Novanet, Euros,
  Skype, Yahoo etc are providing I..T. to SMEs,
  Corporate, , BPOs, Call Centres without having
  register in India and without any license.
• Whereas ISPs providing similar services have to
  pay 12.36 Service Tax and 6 AGR.
• It is loss of revenue to Govt as well as loss of
  opportunity for Indian ISPs.
• It is also serious security threat to the nation
  as they do not come under any Indian regulatory/
  policy framework. It may not be possible to
  obtain any data such as CDRs from them.

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Key Issues of ISPs

• Restricted Internet Telephony
• Hurts Consumers and
• Government Revenue
• Help flourishing Gray Market
• Loss of opportunity for legitimate ITSPs

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Key Issues of ISPs

• Internet Telephony -Termination on PSTN/PLMN -
  Simple Economics
• Income calls to India by ILD/Access Providers
• Calling card from US to India Rs 4
• Breakup
• Foreign Service Providers get - 50 paise
• Carrier - 50 paise
• ADC/AGR to DoT - Rs. 1.20
• Profit to ILD/Access Providers - Rs. 1.80
• In case service provided by ISP
• Foreign Service Providers get - 50 paise
• Carrier get - 50 paise
• ADC/AGR - Rs. 1.20
• Access Service Providers - .30 paise
• ITSP gets - .50 paise

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Key Issues of ISPs

• Non-Termination on PSTN/PLMN - Simple Economics
• Out going calls to US by ILD/Access Providers
• Current Rate Rs 4 per minutes
• In case ITSPs allowed to terminate on PSTN/PLMS
• Foreign Service Providers get - .40 paise
• Bandwidth - .15 paise
• Foreign Carrier - .30 paise
• Access Service Providers - .30 paise
• ITSP gets - .15 paise
• Total - Rs. 1.30/-
• 275 per cent cheaper than the ILD/AP providers

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Key Issues of ISPs

• IPTV
• Is not a technology per se, rather it is a value
  added services which can be provided on the
  broadband network.
• ISPs are in a position to provide triple play.
• Rs. 100 cr. Net worth has kept most of the stand
  alone ISPs out of the business.
• Accelerating the speed of e-Governance
• Govt should encourage states to accelerate the
  pace of e-governance process and put more and
  more public utility information and services on
  the Internet .
• Content Development
• Broadband infrastructure is meaningless without
  appropriate content. Govt (Both Central State)
  should provide more content in the local
  languages.

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Key Issues of ISPs

• Synchronization, Encryption Security
• Unless users find comfort level in terms of
  security experience, serious broadband adoption
  would be difficult to achieve.
• Synchronization of all clock-based telecom eqpt
  within the country with national clock is must,
  especially relevant for real-time applications
  and security point of view.
• 40 bit encryption need to be review. Most of
  online activities like booking of railway/air
  tkt, banking transactions etc require at least
  128 bits encryption.

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Key Issues of ISPs

• Removal of Category C License
• Will harm consumer interest in niche areas not
  serviced by the bigger players.
• Kill the opportunities for the small
  entrepreneurship which can serve consumers in
  the remote as well as non-commercially viable
  city/districts.
• No gain to Users, Industry nor Government.

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Key Issues of ISPs

• Spectrum for Broadband
• Spectrum policy favour Voice against Data
• ISPs are being neglected which are the major
  stake holder in Wi-Max and Wireless Broadband
• Auctioning of Spectrum will translate in to
  increase of prices for Broadband services in the
  country which is a price sensitive market.
• ISPs will be out of the business.
• Atleast 3 frequency band must be reserved for
  ISPs which will help increasing penetration in
  the rural areas.

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Thank You www.ispai.in