BSNL Broadband- A fraud?
BSNL, Broadband News, India Broadband News, Personal Experiences October 2nd, 2005
BSNL Broadband- A fraud?
The text of my email to various newspapers and news channels- hopefully, someone would pick it up. It is too demeaning to suffer at BSNL’s hands. Let us hope for the best. Unfortunately, it has not been highlighted in the media over the past few months. There are major inconsistencies, which have not been noticed at all.
There was a major controversy over the fact that Huawei has been able to supply the telecom equipment for the lowest prices. It is widely believed that in part, it has been subsidized by the Chinese Government. In any case, Huawei, based in Bangalore, has been in the thick of the storm over alleged espionage activities.
BSNL broadband under DataOne gives a contention ratio of 1:50. This means that the same connection is spread among 50 users- assuming the fact that not all 50 users would log on at the same time. While advertising for speeds of 256 kbps (and not UPTO 256 kbps), BSNL’s action tantamount to cheating its consumers. It is by no means a coincidence that despite the promised 32KB/s, I am only getting up to 5-8KB/s throughout the day. 1KB/s (Kilobyte) equals 8kbps or 8 kilobits per second.
The biggest hassle is the download limit of 1 GB (roughly equals to 1000MB). Despite its claims on the official website, 1 GB is not clearly sufficient even for an average user. Would anyone care to ask BSNL that why it consistently logs in upload and download data in its server logs? To me, it beats the rationale to install expensive billing servers, rather than provide cheaper services.
BSNL charges Rs 1.20p for every excess 1 MB downloaded. However, by current estimates, it costs them less than 30p per MB. Thus, a markup of almost 400% this is indeed usurious. Nowhere in the world, would a telecom company be allowed to loot customers in such a blatant manner. The actual costs, as back of the envelope calculations are concerned would be roughly Rs 1320(including service tax of about 10%) for excess 1000 MB download- excluding the regular phone bills. This means that BSNL is clearly curtailing the cost of the access while pricing it overtly steep for ordinary consumers like me. This beats the advertising price tag of Rs.250 monthly rental. This plan incidentally gives only 400 MB as free usage- given that BSNL is assiduous about measuring every byte, it would expire within hours of heavy usage.
Since BSNL is the only pan Indian player in the market, consumers are forced to use its services. Reason being that dial up services are far more expensive. Adding salt to our wounds, it is often equated with WORLD WIDE WAIT- with pathetic services to boot. Hence, this qualifies for a perfect case of abuse of monopoly and dominant position in the market.
I complained to Competitive Commission of India on this account- they flatly refused to charge claiming that the provisions of the act were not notified yet. My mails to Telecom Regulatory Authority of India bounced back- that too from the email address taken from their website. I took my complaint to Department of Public Grievances- so far there has no word from them either. My previous experience with BSNL has not been sweet either- I realize the fact that repeated mails go unanswered.
Frankly, this qualifies for a class action suit against the telecom company, who is sparing no efforts to stem the flood of disconnections. ADSL or DataOne is widely perceived to be a “value added service†and no more.
I am reaching out to you in the hope that you would look in this matter and initiate investigations in the same. The power of media cannot be underestimated; for me it would be satisfying enough to see the authorities accepting their guilt.
BSNL has been set up with huge public funds- over the past 50 years; it has operated as means of government largesse. As ordinary consumers, we have not had any say at all. It is much vaunted rural telephony plans have not really matured (the private telecom operators are no saints either- the government has not forced them to honor their rural telephony obligations either- instead they are reducing the license fees only because it helps to lower the operators costs!). Why is BSNL extracting its pound of flesh? This is clearly not done- how would anyone explain its Rs. 5000 crore profits?
Is there no end to greed?
Tags: Broadband in India, BSNL

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