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News >> Technology >>
International bandwidth prices to drop
By agencies
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Thursday, 01 June 2006, 19:30 IST
NEW DELHI: Telecom regulator TRAI feels that there is some scope for further reduction in the bandwidth prices which has the potential to cause a fall in the cost of telecom and it as well as it-enabled services in the country.
"There are already some movements in that direction (of a further fall in the bandwidth cost), which can be seen in cases like VSNL and Reliance where one of the players was granted access to the landing stations of the other on Indian coasts by an international court of arbitration," TRAI Chairman Nripendra Misra said.
"There is further scope for reduction in the bandwidth prices. It is likely to reduce as more bandwidth will be available," he said.
In 2005, TRAI had earlier reduced bandwidth rates and set a ceiling on it. It had slashed the global leased line circuit rates by 70 percent. TRAI has also underlined the need to remove bottlenecks in cable landing facilities and enhance competition in the IPLC market.
Bandwidth is a key resource for offering international long distance telephony, IT services and BPO companies.
Tata-owned VSNL recently lost a four-year old battle with Reliance Flag with the ICA granting the latter the right to upgrade and sell international bandwidth directly to end-users in the country.
VSNL had earlier refused to grant Flag access to its Mumbai landing stations.
Experts say the international leased line (bandwidth) prices in India will witness more competition and see fall by 30 percent depending upon capacities.