The Broadband war heats up

The end customer has never had it better. After a month of the MTNL-BSNL
announcement, Airtel Broadband and Telephone Services has now launched new
broadband tariff package, to compete with the PSU's much-touted
pocket-friendly tariff rates.

Airtel Broadband's packages are now available at multiple price points
enabling users to choose from tariff plans starting from as low as Rs 349, for a
256 Kbps connection for home users. Tariff packages announced include the
flexi-plan, which offers customers the flexibility to utilize the monthly
charges either on Internet usage, or on voice usage or both. Airtel has also
lowered the one time upfront charges including installation and registration
costs and security deposits.

Airtel's 'always-on' DSL service is currently available in bandwidth
packages of 64 Kbps, 128 Kbps, 256 Kbps, 384 Kbps and 512 Kbps. Its lowest end
offering is the 'Turbo Starter pack' at Rs 249/month for speeds upto 64
Kbps. For the business user, the packages start with a monthly rental of Rs
2,495 for 512 Kbps.

Airtel is also moving strongly on the marketing front using the direct
selling mode, with a dedicated sales force. According to Rajiv Kohli, CEO,
Airtel Broadband and Telephone services, Northern Region, "Instead of the
pure vanilla broadband being offered by most BB providers, we are offering
applications such as Wi-Fi, VPN, video on demand and video surveillance, which
are emerging as valuable services much higher on the value chain."

With another telco reducing broadband prices, stand-alone ISPs are fearing
losing out in the fierce Broadband battle as they are devoid of distinct price
advantages available to the telcos.

Jasmine Kaur in New
Delhi