Corporate Results of over 2500 companies Sunday, January 23, 2000
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This week we focus on a complete analysis of the
internet backbone industry
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MTNL ready for revenue-sharing with ISPs 

Neeraj Saxena  
New Delhi, Jan 20: In a significant announcement at ISP 2000, MTNL chairman and managing director S Rajagopalan said the government sector metro telecom provider was ready to consider revenue-sharing with private ISPs.

This could mean that any ISP would get a share of its revenue derived from the telephone calls made to his internet node since access to an ISP's service is made via MTNL or DoT's land lines. Till now, the charge of Rs 1.20 for a three minute unit call is retained by the access provider.If MTNL and DoT can come to an agreement with private ISPs, the latter can expect much more improved bottomline. In turn, this benefit is likely to be passed on to the consumers by ISPs.

According to VSNL director operations Amitabh Kumar, India could witness free internet access as early as within three months. ``A handful of large ISPs are already working on it along with some venture capitalists and you will see some of them offering free service soon,'' said Kumar.

Though he refused to disclose names of the companies working on it, ISPs like Cal Tiger and some category A licencees are understood to be working on free access. ``Since it is a big volume game, only those with financial muscle can make it happen and build their revenues largely through advertising,'' according to Kumar.

In due course of time, VSNL and MTNL were bound to emerge as wholesalers of bandwidth access to private sector, he admitted.

At present, however, VSNL is going strong in the retail market with 3.30 lakh internet subscribers.

Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.

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