Mar 13, 2000|
Internet infrastructure to get another boost
The Department of Telecommunications (DoT) has decided to permit private companies to set up gateways for Internet traffic. Earlier, the Internet service providers had been permitted to set up such gateways.
The DoTís decision to permit private companies to set up gateways is a step in the right direction as it will have the effect of increasing competition in the sector. This can be expected to lead o lower costs and better quality over a period of time. These benefits will have the effect of lowering Internet access costs. Till recently, Internet traffic was a monopoly of the Videsh Sanchar Nigam Limited (VSNL).
Currently, Satyam Infoway, Bharti Telnet and Global Tele are in the process of setting up Internet access gateways. From the companiesí perspective, the increasing competition in the sector is likely to lead to lower margins as more companies fight for Internet traffic (which is currently growing at a very fast pace).
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