The challengers challenged

Venkatachari Jagannathan
24 December 2002

Both the telcos are offering digital subscriber line (DSL) broadband via their telephone line. BSNL uses the direct Internet access system (DIAS) developed by the Intel-invested Banyan Networks, Chennai. On its part Bharti uses Siemens technology.

The unique aspect of their service is that the subscriber can simultaneously use the telephone/voice as well as access the Net. Sify, which delivers wireless broadband through its cyber cafes, has decided to expand its retail presence by targeting households for its hybrid broadband connectivity (See Sify’s hybrid option).

Recently, on an experimental basis, BSNL has started offering the ‘always-on’ (24 hours Net connectivity) broadband service via DIAS in one city in each telecom circle. For Rs 1,800 per month, BSNL delivers 128 kbps speed and does not impose any download restrictions as is being done by cable ISPs and Bharti.

Further, there are no modem costs involved for BSNL customers. The customer also needs to shell out Rs 2,000 as a onetime connection charge, and Rs 3,000 as a refundable security deposit. On the other hand Hathway Cable charges Rs 1,500 for the same speed, while restricting the download to 1GB.

The cable net subscriber also has to bear the modem cost of Rs 7,800 or the modem rent of Rs 500 per month. In all their subscription packages the cable ISPs charge a minimum of Rs 2 per extra MB download. If one goes by the trend in the telecom sector, in all probability BSNL’s rates will be revised downwards.

In the case of Bharti, a 64-kbps DSL connection costs an individual Rs 995 per month with usage restrictions — 100 hours / month and 1 GB download. While the non-refundable security deposit is Rs 3,000, the cost of the modem works out to Rs 8,000. In the case of 128 kbps connection, the monthly rental is Rs 2,900 with a download limit of 5 GB and a non-refundable security deposit of Rs 8,000.