17 March 2010

MTNL broadband prices untenable

I wrote the following email on 8th Mar 2010, to MTNL-Mumbai and to their bosses at Min. of Telecom, DoT, TRAI, Committee Rep. ....

from: Praful Vora
to: feedback.mumbai@mtnl.net.in, gmbbmbi@mtnl.net.in, gmw1mbi@mtnl.net.in
cc: edmbi@mtnl.net.in, ap@trai.gov.in, secretary@trai.gov.in, MOCIT@nic.in, gurudas.kamat@nic.in, sidbehura@yahoo.co.in, Shaukat_tirmizi@yahoo.com
date: 8 March 2010 18:47
subject: Broadband prices untenable

Greetings ...

I have been using MTNL services for over fifty years. The evolution and improvement in services is unbelievable to say the least. I have also been using the Broadband Triband service since 23rd April 2005.

Currently my 'usage plan: DSL-599' allows me about 2,500 MB download with peak speeds of: 2041 down / 509 up kbps with extra charge of Rs. 0.80 per additional 1 MB download. I normally get 1024 / 256 at my home. My broadband monthly billing comes to about Rs.900 (Rs. 10,800 per year).

India has about 81 million internet users. The actual working 'internet connection' are about 6 million. The policy of the GoI is to increase this many fold, to reach 100 million 'users' this year. As against global standards, India is severely lacking in this initiative and usage; we should be having 500 million users and 100 million connections. The telecom revolution has raised the aspirations of the citizens for an INTERNET REVOLUTION. Useful info is available at the link: Asia Internet Usage Stats and Population Statistics
(http://www.internetworldstats.com/asia.htm)

As against this, the number of 'land line connections' in India, are dropping every financial quarter. Today it is about 3.7 million. The wireless connections for phone, mobile and internet are rising by the millions every week. MTNL is slowly losing out in the race and the great telecom initiative is slowly dying. Yet it will not share its landline infrastructure for mutual gain. It seems to prefer gradual death by suffocation instead of new life through synergy with dynamic corporates with new plans. The IPTV plan is just not satisfactory ... I spent some Rs. 5,000 and got almost nothing in return, before I de-listed.

Please check out today EcoTimes, page- 11. BSNL has advertised for its EVDO card. This is a USB enabled plug-in giving user the freedom to access the internet anywhere. The specifications are: peak download 3.1 Mbps, Rs. 750 per month for unlimited download with free roaming, Rs. 0.50 per MB for pre-paid plan.

This is a shocker! Compare what MTNL has. As a consumer ... I do not have MOBILITY, no UNLIMITED with peak 3.1 Mbps, higher extra download charge per MB. The current MTNL 'unlimited download' plans are too costly for equivalent speeds and freedom of use: DSL_Unlimited_999 costs Rs. 999 per month for unlimited with 1 Mbps speed.

My request is for MTNL to: triple / increase: its 'download volume limits' for existing plans, same for speeds for all its 'unlimited download' plans and other types of plans, and reduce its rates for 'extra download charges' / prepaid plans from Rs. 0.80 per MB to Rs.0.20. BSNL seems to be moving in the right direction.

Please understand that the 'per capita income' for citizens is about Rs. 39,000 per year and after housing, food and utilities, hardly Rs. 9,000 is left for education, health, apparel, entertainment,etc. How do you expect the 'aam admi' or even the 'aspirational class' (with Rs. 150,000 income per year) to spend Rs. 10,800 per year for internet. This is almost twice what citizens pay in USA at 'ppp rate of Rs. 15 per USD'. It is much higher that our developed Asian neighbors. Kindly check the link: Mobile, broadband prices dropping worldwide | Digital Media - CNET News (http://news.cnet.com/8301-1023_3-10458877-93.html). One might expect only 01% of annual income to be spent on this.

The national policy to increase internet connections will remain only on paper and consumers will opt for only LIMITED connections of very low rates, to enable email and news reading. The whole world of 'audio-visual' clips, music, downloading from Govt. sites for 'forms' etc., shopping, e-governance and banking on internet will be lost to the consumers. This is not the way India will improve its governance and meet the aspirations of its citizens. Please study the international study in the attached pdf file (http://www.itu.int/ITU-D/ict/publications/idi/2010/index.html). The OECD offer speeds of 8 Mbps going on to 20 Mbps and we are struggling with low cost plans of 256 and 512 kbps. Why do we keep thinking and acting SMALL for a LARGE nation?

Please review the marketing and pricing policy for Mumbai and Delhi and take your place in the national leadership.

Best wishes.

1 comment:

Richa said...

MTNL is a sister concern company of BSNL and comes under Central Govt... The customer base of MTNL is nearly 5.92 million. And from past few years the graph is going down even if the Indian Govt. is spending too much of huge amount to uplift the customer base, but still the graph is going down and the main reason is their “GREAT SERVICES”. The MTNL lineman don’t have enough idea to configure even a modem and to solve a single complaint they take nearly 1 month or more because the don’t have enough workforce and the coverage area is very big. And when you see the MTNL exchange you become shocked to see their exchange, made of HUWIA equipments, and when you see the AIRTEL exchange you will find Ericson equipments just because the cost of HUWAI equipments are nearly half then Ericson.
Basically they have two type of exchange one is for 256 Kbps and one for above 256Kbps, if you buy plan for above 256 then you may get good response because for that only they use Ericson exchange.
I raised my voice at Consumer Court and submitted a online complaint and found that I am not one who is facing the problems with MTNL http://www.consumercourt.in/broadband/1-mtnl-broadband.html here you can check the details of complaints.
I don’t know why the Govt. change the plan to get more customer and spend a huge amount in ads, the salary of lineman is nearly 15000/-, I think this is a total waste. Customers are very much frustrated from MTNL. If you visit the MTNL exchange you will find many customers shouting on the Area Manager. MY personal experience with MTNL was pathetic and now I switched to another services provider and now I am very much satisfied.