The Internet Service Providers’ Association of India (ISPAI) has asked for service tax exemption for the next five years, citing lack of adequate broadband penetration in the country as a reason for the exemption. They’ve sought a host of other perks, including waiver of sales tax on goods and services transacted through e-commerce and entertainment tax levied on broadband subscriptions and entertainment services provided via the Internet. Even more demands here (The Economic Times).
A few questions: How much of the benefit of these policy changes demanded will actually filter down to the customer? Is price the only reason for the lack of penetration of broadband? I don’t think so. I participated in an MTNL customer survey on quality of service (enforced by TRAI), and every ISP whose services I have subscribed to has been deficient in one way or another. TRAI had issued some pretty tough guidelines. The ISPs had better clean up their act before demanding rebates.
Related:
– Moratorium On ISP Licences In India
– <a href="http://www.contentsutra.com/entry/sify-broadband-fined-for-unfair-trade-practices-and-for-slashing-bandwidth/" title="Sify Broadband Fined For
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