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Friday, May 2, 2008

After the drama of ISPs to stop ADSL

I was closely watching the drama of private ISPs to stop Nepal Telecom
to launch ADSL service and really frustrated by the acts they
performed in order to stop NT.

NT announced ADSL much before but they could not launch it before
just because of the protest of those ISPs. Worldlink and Mercantile
came in front on protest and used their political power to stop NT.
Unfortunately, they became successful.

Again, this time, NT made another effort to launch ADSL service. This
time, after several efforts to stop NT and failure to convince the
authorities, private ISPs went to court to stop NT.

Private ISPs were charging around 6000-13000 NRS per month for high
speed Internet (but actually, due to bandwidth shaping, you won't get
high speed). But, NT proposed to provide the same with 900-2700 NRS.
And, NT exposes the fact that with this prices, they will make a
profit of 11%. It brought the fact out that how much these private
ISPs are looting the customers. Mr. Pawan Shakya from ISP association
on a press meet presented the logic that, "they are not against the
speed service and price actually, but they fear that Internet might
not be available and users might face the scarcity of the service
exactly as the shortage of petrol which customers faces now due to low
price in comparison with the cost price". I don't understand the
logical link between the shortage of petrol and the slicing of price
on Internet. Neither I understood how they can say that proposed price
is below the cost prices since NT says the price makes profit of 11%
to them.

At the end, NT won the case from the court. Then, the
Telecommunication Authority also mediated among private ISPs and NT
about the service. Previously, NT had taken stand not to share their
cabling infrastructure and resources with private ISPs but after the
mediation of of NTA (Authority), it agreed to share it with local ISPs
as well in return of full support of local ISPs for its ADSL and
further high speed Internet projects.

This issue will make a substantial difference on customer rights as
well. But, again, the chances of monopoly still remains until some
other local ISPs launches similar service. This issue also brought the
fact in front that local ISPs are never serious about services they
are providing, but they are only focusing on their profit margins.

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