The Hindu Business Line : TRAI issues paper on ceiling tariff for bandwidth prices

A DAY after submitting its recommendation on broadband, the Telecom Regulatory Authority of India (TRAI) on Friday set in motion a discussion on reducing international bandwidth prices by as much as 70 per cent.

"As a first step towards implementing the initiatives of Broadband India, TRAI has issued a consultation paper seeking comments of stakeholders on fixing a ceiling tariff for international private leased circuit (IPLC) (half circuit)," a statement issued by the regulator said.

TRAI said users had been complaining of extremely high prices for international bandwidth, and this was making India non-competitive compared with Asian countries.

"After review of the tariff based on data furnished by the Tata-controlled Videsh Sanchar Nigam Ltd and other data available with the authority on international prices of bandwidth, it was felt necessary to fix a ceiling tariff for IPLC (half circuit). We have used the data provided by VSNL with changes in certain underlying assumptions to obtain reasonable cost-based estimates," the statement said.

The TRAI consultation paper suggests a 40 per cent reduction in the ceiling tariffs for 2 mbps (mega-bits per second) and below capacities of bandwidth (E1) and about 70 per cent cut in 45 mbps (DS3) and 155 mbps (STM1) capacities compared with the recently filed tariff by VSNL for the IPLC.

IPLC is a dedicated point-to-point connection providing assured bandwidth between two points, one being in India and the second in a foreign country.

India has emerged as one of the leading providers of IT-enabled services in the world and is fast acquiring a formidable reputation in this sector, TRAI said, adding that the competitiveness of these industries in the global market was dependent to a large extent on the price they pay for bandwidth.

The regulator has sought comments from the industry and stakeholders by May 27.

More Stories on : Broadband | Regulatory Bodies & Rulings

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
New Tata Tele head for business planning

e-Serve buyback may hit roadblock

Moser Baer net up 36.73 pc

Subex net up 78%; to beef up products portfolio

IBM Rational software for HCL

Hinduja TMT net at Rs 15.53 cr

Aptech Yuva.Com to launch computer literacy mission

Fidelity National to take stake in Covansys

TRAI issues paper on ceiling tariff for bandwidth prices

Satyam customer meet in Florida

Call centre at Kinfra