TRAI moves to fix ceiling tariff for international bandwidth

In a move aimed at increasing the broadband usage, Telecom Regulatory Authority of India (TRAI) has indicated in a consultation paper that prices of international bandwidth could come down by as much as 70 percent, which is likely to propel
the spread of broadband services in the country.

Releasing a consultation paper on 'Fixing of Ceiling Tariff for International Private Leased Circuit (IPLC) (half circuit)' in Delhi, TRAI said that users had been complaining of extremely high price points for international bandwidth and this was making India non-competitive when compared to other Asian countries.

"After review of the tariff based on data furnished by 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," TRAI said in a statement.

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. The tariff for the far end is dependent upon mutual negotiations between the foreign carriers with their Indian counterparts. At present, the tariff for near-end half circuit IPLC is forborne. 

The Authority also recognizes that similarly, prices for domestic leased circuits also require review. These circuits also play a significant role for ITES industries and the success of broadband India. The authority will issue a consultation paper for revising these tariffs in three weeks time.

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