TRAI proposes domestic leased line tariff reduction
By Our Corporate Bureau | 05 Apr 2005
Mumbai: In line with its proposed reduction of international private lased line circuits (IPLC) tariffs, the Telecom Regulatory Authority of India (TRAI) is planning to slash domestic leased line circuit rates and reducing broadband access rates to $1 per 100 MPBS connectivity.
"A report on the proposed reduction of domestic leased line circuits is ready, which will be introduced in a week's time," said Pradip Baijal, chairman, TRAI, speaking to reporters at the `FICCI-Frame 2005' convention here today.
However,
Baijal did not disclose the specific reduction in tariffs contained in
the report, though he added that a discussion on the white paper for the
proposed reduction was complete.
Earlier, on March 11, 2005, TRAI had slashed IPLC rates by 70 per cent
and had set a ceiling tariff of Rs13 lakh for E1, Rs104 for DS3 and Rs299
lakh for STM-1 connectivity mode on a half-circuit, per year basis. The
reduction was to have come into effect from April 1, 2005.
The move did not find favour with the major internet gateway and service provider, Tata group company, Videsh Sanchar Nigam Ltd (VSNL), which challenged the order in an appeal before the Telecom Dispute Settlement and Appellate Tribunal
Baijal
apprehends that the move would trigger another round of challenges and
appeals, this time from the incumbent Bharat Sanchar Nigam Ltd and VSNL
as both offer domestic leased line services.
TRAI has also proposed bringing down broadband access charges from $4
per month to around $1 per month, for 100 MBPS connectivity. "A year
ago broadband access cost $16 per month in India, while in South Korea
it cost around 25 cents. When supply is not a constraint, there is no
reason why tariffs should not come down from their current levels."
Baijal also stated that TRAI was working on a uniform licensing regime,
whereby broadcasters, telecom service providers, and internet service
providers would be brought under a single licensing regime.
On direct-to-home (DTH) services, he said that it was just starting to get a foothold in the country and added DTH should be viewed as a platform and not as a regulator. Baijal also said that a second DTH operator would operate in the country.