Monday, April 23, 2007

TRAI Announcement - What a CRAP

A few of you who know me personally, would know that my company runs a Data Center for Hosting / Co-Location and Dedicated Servers in India. We are amongst the two other companies that do this business Independently and are not ISP's. We have to setup a facility and buy our bandwidth, sadly I had all my hopes pinned on to Nixi, that the moment it will Go live, will not only bring down the prices of Bandwidth but also allow a faster interconnect route to other ISP's.

The reason for Data Centers in India being at such a low penetration is not only the critical power situation, but also the fact that INternet Bandwidth is very expensive, the current buy price of Internet bandwidth 1 MB 1:4 starts at about 5,00,000 (5 Lacs Rupees Per Annum or US$ 11,000 Per annum). Compare this to about 100$ in the US, this business needs a serious look.

When Nixi went live, I wrote to them for an interconnect, and was told the following

"Since you are not an INternet Service Provider, we will not connect to you, we only offer this service to ISP's, and not to Data Centers", on digging further, this is what I was told, that Companies like Yahoo / Google / Indiatimes etc buy STM's from large ISP's at huge profitable prices, if Nixi was to allow every one to connect, where would the ISP's go.

Does this mean that India by default wants to do all businesses, and not by leveraging the technology service aspects. Well Today's news in Business Standard, seems to be a mockery, that Nixi is under utilised, but if you wanted to connect your Data Center to Nixi, to get onto the National backbone, go sleep, or get your self an ISP Licence, which you can't for the next 3 years due to security and other concerns.

What a bunch of Crap.

GS

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