IT firms to pay more for disruption-free internet

By siliconindia   |   Tuesday, 23 December 2008, 21:51 IST   |    1 Comments
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Mumbai: As an aftermath of the recent undersea cable disaster, IT firms and enterprises may have to put more cash on loose to ensure disruption free internet bandwidth. The cable operators are contemplating over increasing prices for offering 24X7 or restorable leased line services. Leased lines are dedicated circuits which provide permanent Internet connectivity and are heavily used by IT and IT-enabled services industry for voice and data transfer, reports Economic Times. As submarine cables like SeaMeWe3, SeaMeWe4 (backed by 16 telecom companies) and Reliance Communications' Flag in the Mediterranean region has led to disruptions in service, the operators will have to arrange for capacity of cables on different routes. So, while the firms will be assured of no-disturbance in internet, this will lead to inflated costs for the providers as they have to keep capacity free 24X7 on a different cable route. Hence, this cost of keeping spare capacity will be passed on to end users, through high pricing of bandwidth.