New Delhi, Dec 16: The Department of Telecommunications (DoT) has submitted a proposal to the union cabinet to reduce the tariff structure for value-added services to attract more subscribers.

DoT wants to make the services popular, but sources say the present structure makes it difficult to penetrate new areas. The value-added services like Internet, video-conferencing, Inet, radio- paging, public mobile radio-trunked services and domestic data service using Vsat are the likely beneficiaries, if the proposal gets cabinet nod. DoT in its note to the cabinet committee on infrastructure has said these services are not picking up in the country as the tariff rates are high.

"Hence there is a scope for reducing tariff for leased services in general. Reduced tariff may go a long way in generating more demand for data services," the note said. The department itself is operating Inet, HV Net, Internet and enhanced value-added fascimile services. It also provides leased data circuits at data rates 64 kilo bits per seconds and higher. DoT feels the tariff for data services is high, and so the demand is not rising. Citing the poor response for value-added services, particularly that of data-based ones, a DoT source said, "We started video conferencing. But no one is picking up."

It feels the user-base and revenue-earning have to improve substantially, if new services are to become successful. "Even now only 10 per cent pay 90 per cent of the revenues of DoT. Average telephone revenue should exceed Rs 9,000 per annum to make universal service viable," said the source. DoT's new approach is to restructure the tariff to attract a larger customer base. This could be more relevant, especially for the purpose of software export and other data-based activities of national importance. The DoT note has cited the example of giving concessions like licence-fee waiver for Internet service providers (ISPs) to keep interconnect charges to be paid by them promotional. "It is necessary that the tariff for all such applications like software export, Internet, etc, are reviewed and made promotional," the note adds. DoT wants the concessions being proposed for Internet expansion to be extended to other services as well. This is expected to create added interest and awareness in the public for wider use of the value-added services. Even private operators of value-added services, except for cellular phones, are feeling the pinch of poor public response to their offers. Inet, DoT's packet-switched public-data network called Inet-II is a data network providing connectivity up to 64 kbps. Of the network, 95 nodes are already operational covering almost all the country's major towns.

Another ten nodes are being planned to be commissioned, bringing the total nodes to 105 by January 1998. This network has a capacity of 18,000 connections. At present, this is under- utilised with only 4,000 subscribers of varying needs. Similarly, for Frame Relay, for data communications, only two parties have placed requests. In the case of the high-speed Vsat network too, there are about 40 subscribers only.

The subscriber-base for Internet is not even a lakh, though the government is making efforts to popularise it. The Internet tariff is already low, and is being proposed to reduce it further. Similarly, ISDN, which provides a dial-up multimedia connection with capacity for computer link-up, desk-top video conferencing is poised for a big expansion. DoT plans to set up 35 new stations other than the existing 12 by 1998, and another 100 in 1998-99. But so far, it has got only 350 subscribers for this service.

DoT now plans to relaunch these services commercially making the tariff structure attractive.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.