TRAI ends Tata-Reliance bout on bandwidth

The battle for bandwidth between the Tatas and Reliance came to an end today, with the former agreeing to release 1000 megabytes additional ...

The battle for bandwidth between the Tatas and Reliance came to an end today, with the former agreeing to release 1000 megabytes additional capacity within a week, thus paving the way for a cut in prices for end users.

The Tata-controlled VSNL and Flag, recently acquired by Reliance, reached a settlement in the presence of telecom regulator TRAI. The warring parties signed the minutes stamping the agreement this evening.

The agreement assumes importance in the wake of Reliance’s earlier declaration of cutting down the bandwidth price by up to 70 per cent for end users, whereas VSNL offered the release of 17 STMs (a capacity totalling 1,000 MBPS) to global carrier Flag, in case it had the capability and capacity to accept the same.

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‘‘VSNL will release 17 STMs within a week … Reliance has accepted the proposal,’’ said TRAI member D.P.S. Seth, after chairing a six hour-long meeting between officials of both companies.

With this, the release of bottleneck facilities sought by Reliance had been achieved, Seth said, but added that commercial terms between the two would be decided by them.

— (PTI)

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