India’s state run monopoly internet service provider, Videsh Sanchar Nigam Ltd (VSNL) has suspended the process of issuing new internet connections because of lack of telephone lines to support its services. There are 25,000 applications pending for new internet connections in Delhi. VSNL has 32,000 internet subscribers in Delhi and only 18,000 telephone lines. It had applied to the state run telecom service provider in Delhi, Mahanagar Telephone Nigam Ltd. (MTNL) for 900 new lines but that is yet to materialize as VSNL has not paid the initial deposit of $35,300 for the 900 new connections. In Mumbai, too, VSNL has not accepted any new applications for the last one-month. Lack of lines coupled with the poor quality of MTNL’s lines have aggravated the problem. Private ISPs are expected to launch their services late this year unless there are some changes in government policies.
