ISPs Ask For Tax Relief; Even If They Get It, Will Service Improve?

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/&quot; title="Sify Broadband Fined For

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