On Sunday 09 July 2006 21:54, Saswata Banerjee & Associates wrote:
Dinesh, you read carefully first. Making a commercial offer at a lower in price than competitors or different term is not monopoly. Your definition is wrong. Monopoly is like BEST in Mumbai, where no one else is ***allowed*** to ply public use bus services. If 2 cable tv companies, one offering a bundled service while others are offering a per channel cost, does not make the first guy a monopolist. Its a commercial offering, nothing stops others from offering the same, if they are not interested in offering that rate, it also is a commercial decision.....it does not make the other company a monopolist.
I'm sorry, I didn't want to do this but here we go...
Formal definition of a monopoly: ---------------------------------------------------------------------- A situation in which a single company or group owns all or nearly all of the market for a given type of product or service. By definition, monopoly is characterized by an absence of competition - which often results in high prices and inferior products.
Strictly speaking a monopoly is a market containing a single firm. ----------------------------------------------------------------------
So by definition, Airtel has a monopoly since it has a product which no other company has.
TRAI cut the price only because VSNL had monoploy right over the landing station signed 15 years ago. Before that, lease line prices were 20+ times higher than international rates. Besides, the cut was on account of distorted pricing levels between large and small users. The actual cut in rates was done by VSNL while it was still owned by the government. It will still need to come down to 1/4 of what it is today.
I dont have the figures at hand but I am pretty sure TRAI cut the rates by upto 70% so that the leased line prices in India are on par with the international prices. But I'll take your word for it that the prices need further reduction.
Mobile voice arpu is around Rs. 240. It was 600 a long time ago. Worldwide, revenue shifted from voice to value added and data services. But I dont think the arpu for broad band is not Rs. 1000. Most of the connections sold in India are lower.
Are you sure its 240INR. I am pretty sure Airtel, Hutch have ARPU of 600INR atleast in Mumbai. And I had said, the _potential_ ARPU _can_ be 1000INR.
No. Anyway, it is not local leased lines, it is international data lines that make the difference. Do you know the cost of providing cable internet services in mumbai ? -You need to buy a bandwidth (Bharti, MNTL, Reliance). at 1:1 and not 1:4 compression -Then you need a local loop operator and pay local loop charges to the locality -Then you need to create and implement an POP (Point of presence) -Then you need to have fiber from the POP to the building -Then you need to local access point in the building to terminate fiber -Finally you will need to take a local wiring to the subscriber's place ***deleted ***
Yes, thats why I every sane person was screaming to the govt. to unbundle the local loop. The high cost of creating your own local loop is stifling competition. The government is forcing private players to create their own loop. The private players can't afford to create fibre optic loops so when the rest of the world is moving to fibre op we are laying more and more copper.
PC2POTS calls will need to have a termination charge (see my previous mail). Termination Charge in India (local call) is 30 paisa. Add that to VOIP call cost, well, BPL charges me - Rs. 49 per min. MTNL charges Rs. 1.20 per 3 minute Mumbai to Delhi. VOIP still has a benefit only in International Calls. ****deleted****>
Ofcourse, I was talking of international calls and not national ones.
Such people will therefore need to pay for the additional usage. That is the rule world wide, you pay for what you use.
No its not. Infact, most retail (home) connections are given out without stupid download / port caps. The only catch being they are shared generally with a 1:4 ratio. Good examples being Sweden, Netherlands, US, Japan and Korea. Their ISPs are definitely not going out of business and they are offering ridiculously high speeds of 10-100Mbps.
Some do put download caps but they have sane caps such as 80-100GB which increase proportionately as the speeds increase.
The connection is available is available, MTNL provides it, but you need to pay for it. 2 mbps, 60GB data limit....... Dont expect to get what you are not willing to pay for.
I refuse to pay them excessive $$ when everywhere else in the world we can get unlimited connections at much less cost. And especially when there are other operators who are offering better services but not available currently in my location.
But in each case, we are willing to pay for the bandwidth, you want to use the same bandwidth but do not want to pay.
Well it is your choice to get ripped off. I wont.