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Trai may slash intl bandwidth tariffs

April 30, 2004 16:05 IST

Telecom Regulatory Authority of India on Friday indicated that prices of international bandwidth could come down by as much as 70 per cent, which would give major boost to the spread of broadband services in the country.

Releasing a consultation paper on 'fixing of ceiling tariff for International Private Leased Circuit on Friday, Trai said users had been complaining of extremely high prices for international bandwidth and this was making India non-competitive compared to Asian countries.

"After review of the tariff based on data furnished by Tata-controlled Videsh Sanchar Nigam 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.

India has emerged as one of the leading providers of IT-enabled services in the world and is fast acquiring a formidable reputation in this sector, Trai said, adding that the competitiveness of these industries in the global market was dependent to a large extent on the price they pay for bandwidth.

Trai has sought comments from the industry and other stakeholders by May 27.

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