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Our Bureau

The TDSAT order would benefit bulk users of international bandwidth including ITES and BPO companies.

New Delhi , Nov 28

DECKS have been cleared for 65 per cent reduction in international bandwidth tariff with the Telecom Dispute Settlement Appellate Tribunal (TDSAT) upholding the international leased line tariff order issued by the telecom regulator. The TRAI order was challenged twice by Tata-managed Videsh Sanchar Nigam Ltd on the grounds that the proposed tariff were not in accordance with the cost of offering the service.

The TDSAT order, quashing the VSNL appeal, would benefit bulk users of international bandwidth including IT-enabled services and BPO companies.

TRAI had fixed a ceiling tariff of International Private Leased Circuit (Half Circuits) in respect of E-1 (2MBPS line), DS-3 (45 MBPS) and STM-1 (155 MBPS) capacities as Rs 13 lakh, Rs 1.04 crore and Rs 2.99 crore per annum respectively.

These ceiling tariffs result in a reduction of 29 per cent, 64 per cent and 59 per cent in tariffs respectively for the various capacity lines.

VSNL, which is the dominant player in the international bandwidth market, had initially challenged these reductions questioning the methodology adopted by TRAI and had also sought disclosure of more data in this regard from TRAI.

Subsequently, TDSAT put a stay on the tariff order and asked TRAI to share the methodology with VSNL. After disclosing the data, TRAI re-issued the tariff order, which was once again challenged by VSNL.

The telecom regulator's main contention was that the international leased line market did not have enough competition to drive down prices and therefore regulatory intervention was required.

The regulator said that availability of cheap international bandwidth was primary to the development of broadband and Internet services.

The National Association of Software and Services Companies (Nasscom) and Internet service providers have come out in support of the telecom regulator's tariff order.

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