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TRAI puts decision on bandwidth tariff on hold

Our Bureau

New Delhi , Sept. 14

The Telecom Regulatory Authority of India today said that it was keeping its order on international bandwidth tariff in abeyance till October 3.

The telecom regulator had announced a 64 per cent reduction in international bandwidth but was forced to hold the order after the Tata-managed Videsh Sanchar Nigam Ltd challenged the order in the Telecom Dispute Settlement Appellate Tribunal.

The TRAI made its decision known during the hearing at the TDSAT today. This came after the tribunal observed that there was no hurry in introducing the new tariffs until the matter was heard and asked the regulator to defer the order. The decision by the telecom regulator comes as a relief to VSNL.

The company had also contested the regulator's first order in April this year on the grounds that since there was enough competition in the international bandwidth market there was no need for the regulator to intervene. TDSAT had quashed TRAI's order and asked for a review of the tariffs prescribed.

The VSNL Chairman, Mr Subodh Bhargava, today said there was possibility of "risks of sickness of Indian enterprises and job losses" if the regulator specifies ceilings, which would force operators to sell bandwidth at a loss.

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