ISPs foresee reduction in bandwidth rates

[LahoreEstate]

By Muhammad Yasir

KARACHI: Internet Service Providers (ISPs) foresee reduction in bandwidth rates and improvement of services quality of backbone providers after Pakistan Telecommunication Authority (PTA) has ended its restricted policy.

Sector people expected the Internet services market will be flourishing more rapidly in the future as a conclusive long struggle for liberalised policy has been initiated by the regulator.

The ISPs have incurred losses from the monopolistic behaviour of Pakistan Telecommunication Corporation Limited (PTCL), which was reluctant to reduce bandwidth rates in the past despite low international cost, said an ISP provider on condition of anonymity.

He said the end of PTCL’s monopoly would also encourage other investors to enter in the Internet service sector as they have now the other option to buy backbone and earn comparatively good returns through business of services.

Since telecom deregulation in 2004, new operators have laid their infrastructure nationally as well as internationally and two years back second alternate backbone provider, Transworld Associate (TWA), started its services in the country. But DSL operators, who are major purchasers of Internet bandwidth, were restrained by their unilateral agreement with PTCL not to buy bandwidth form any other operator rather than PTCL.

According to the sector people, ISP’s buy bandwidth with monthly charges of $30,000 to $35,000 to provide 155 mega bit in the upcountry region, while in Karachi it is at $25,000 on the same bandwidth.

However, they added, the other private company bandwidth rates are lower than PTCL by 10 percent to 15 percent that could provide an option to Direct Subscribers Link (DSL) Operators.

ISPs Association of Pakistan, Convener Wahajus Siraj said the liberalised framework would welcome more internet backbone providers to enter in Pakistan’s market, resulting inflow of foreign direct investment, landing of new technology, competition in service rates and qualities and benefits to customers.

He added that many telephony companies that have laid up already their infrastructures would also get benefit from the new competitive policy of the telecom regulators

He said the DSL operators will also expand their service network with the reduced rates to the un-served areas of the country, resulting grow of users-base rapidly.

There are more than 50 ISPs operational across the country. It has three submarine cables linking Karachi with South East Asia, Europe and North America named as SWM3, SMW4 and TWA, first two with PTCL and third with a private operator.

http://www.dailytimes.com.pk/default.asp...2009_pg5_6