DoT may ask ISPs to connect to national exchange to cut Net tariff

The Department of Telecommunication (DoT) is planning to make it mandatory for all internet service providers (ISPs) to connect to the National Internet Exchange of India (NIXI), which will result in faster and cheaper Internet access for the customers.

According to experts, the move will substantially cut down the ISPs' expenses on domestic bandwidth, which is likely to reduce content download charges, resulting in net reduction in internet and broadband usage charges.

This system was first suggested by Telecom Regulatory Authority of India (TRAI), in 2007, but so far the DoT has not made any serious attempts in putting the policy in place. But, now, an internal committee has revived it in a bid to make internet more affordable. The TRAI had also said that NIXI nodes should be set up in all the state capitals to make it convenient for ISPs to connect to the internet exchange.

Last week, the country's number one operator by subscribers, Bharti Airtel, slashed 3G mobile broadband rates by up to 70 per cent, in a bid to increase data usage in the country (See: Idea follows Bharti Airtel, cuts 3G rates by 70 per cent).

The offer was for those customers who have not subscribed for 3G service, which provides average high internet speed of between 1 megabit per second to 2 mbps, under any special offer and want to use high speed internet as per their need.