ISPs move Trai against BSNL

Internet service providers (ISPs) today approached the Telecom Regulatory Authority of India (Trai), demanding that the regulator take affirmative action against state-owned Bharat Sanchar Ltd (BSNL) for setting allegedly discriminatory tariffs for leased lines.

The BSNL has refused to extend the 25 per cent reduction in domestic bandwidth tariffs, announced on May 17, to ISPs.

"This is a blatant violation of the telecom tariff order (TTO) dated December 8, 2004. The authority should immediately ensure that such discounts are resumed," said Internet Service Providers' Association of India, the body representing all ISPs, in a letter to Trai.

Earlier, as per the regulator's directive, BSNL had slashed domestic bandwidth rates by up to 70 per cent, from May 1. The association added that even under the new regime, BSNL was charging ISPs 33 per cent more than it charged from other customers.

BSNL executives, however, said these complaints were baseless, as the norms allowed service providers to offer additional discounts to "any particular class of customers".

"The tariff reduction is only for our direct customers and not for ISPs, who are telecom service providers. Earlier, too, we offered additional discounts to our direct customers. We treat our direct customers as a different class. We have acted within the regulator's orders. It is also not mandatory that ISPs use leased lines from us. They are permitted to set up their own networks," said a BSNL executive.

The ISP association has also pointed out that BSNL had resorted to similar violations earlier. In May 2004, Trai had asked BSNL to withdraw discriminatory tariffs.

The service provider was found charging 75 per cent more to ISPs for leased lines, compared with non-ISP subscribers, it said.

In December 2004, the regulator had directed that "an ISP-cum-leased line provider must not resort to vertical price squeeze on other ISPs", the association said.