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Our Bureau

New Delhi , March 29

THE Telecom Regulatory Authority of India (TRAI) has deferred the implementation of the reduced international bandwidth tariff by a month.

The move comes after Videsh Sanchar Nigam Ltd (VSNL) filed an appeal with the Telecom Dispute Settlement Appellate Tribunal (TDSAT) challenging the TRAI decision to reduce tariffs.

The revised tariff, which is up to 70 per cent lower than the existing tariff structure, was scheduled to come into effect from April 1.

Presenting its case before TDSAT, the telecom regulator's counsel said that since it would take time for the final order and the April 1 deadline was fast approaching, it was postponing the date of implementation.

The move comes as a breather to VSNL, which had challenged TRAI's decision to regulate international bandwidth prices. TDSAT will take up the matter for hearing on April 13.

Meanwhile, the Internet Service Providers Association of India has been allowed to submit an affidavit with the TDSAT over the matter. ISPs are supporting the TRAI move, as they are one of the biggest consumers of international bandwidth along with business process outsourcing units.

The VSNL counsel said that the there was no transparency while arriving at the 70 per cent reduction in bandwidth prices. They argued that TRAI had followed external consultant Ernst & Young's calculations in arriving at the price reductions, which were not shared with the appellant, leading to denial of natural justice and non-transparency.

VSNL said that it would stand to lose 60 per cent of its revenues from selling international bandwidth if the order was implemented.

VSNL in its appeal said that the end customer costs should be arrived at from the totality of international, domestic and last mile access pieces. "IPLC forms a very small percentage of the total cost structure of broadband, IT and ITES industry.

To focus on the smallest cost component and squeeze it will have marginal impact. Such a move will aid only BSNL as the broadband operator," said VSNL officials.

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