Trai signals rate cut ahead

Telecom Regulatory Authority of India (Trai) today 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 (Half Circuit)’ here today, 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 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. Trai has sought comments from the industry and other stakeholders by May 27.

The Internet Service Providers Association of India at a press meet on Friday had expressed concern at trai’s recommendations on broadband and Internet, saying key issues like reduction in domestic and international bandwith prices had been left unaddressed.