Reduced ceiling tariffs for Domestic Leased Circuits to boost broadband and e-governance

NEW DELHI: In a step aimed at boosting usage of broadband, Telecom Regulatory Authority of India (TRAI) has reduced ceiling tariffs for Point-to-Point Domestic Leased Circuits (P2P-DLCs) of E1 (2Mbps), DS3 (45 Mbps) and STM-1 (155 Mbps) capacities and has brought DLCs of STM-4 (622 Mbps) capacity under tariff regulation.


The tariffs for a Domestic Leased Circuit (DLC) of less than E1 capacity have been left under forbearance. The revised tariff regime for DLCs will come into effect from 1 August.


A leased circuit is a two-way link for the exclusive use of a subscriber regardless of the way it is used by the subscriber. A leased circuit having both its end-links within India is termed as DLC. Since DLCs provide the backbone for not only the telecommunication services sector but also a host of knowledge based industries, these are arguably key inputs for the economic growth of the country.


Under the present licensing regime, both national long distance operators (NLDOs) and access service providers (ASPs) can provide DLCs. The DLCs form crucial building blocks for the delivery of various services like e-commerce, e-governance, Internet access for the masses and knowledge based industries like business process outsourcing (BPO), information technology (IT) and information technology enabled eervices (ITES) industries. Enterprises, having their offices spread out in the country, lease-in bandwidth capacities (i.e. DLCs) from the TSPs to carry their data and voice traffic.


Besides, telecom service providers (TSPs) who do not own sufficient transmission infrastructure in any geographical area also lease-in DLCs in order to provide various telecommunication services to their customers.


Since 1999, the tariffs for P2P-DLCs have been regulated in the form of ceiling tariffs on the basis of capacity and distance. The tariffs for DLCs were last revised in the year 2005. The present exercise to review tariffs for DLCs was initiated by TRAI earlier this year in the context of decline in per unit costs of providing DLCs due to (i) increase in demand, (ii) increase in transmission infrastructure and (iii) increase in the bandwidth carrying capacity of transmission media, and signs of lack of competition in some parts of the country.


After following a comprehensive consultation process, the Authority, through the TTO (57th Amendment), 2014, has brought about the following changes in the tariff regime for DLCs:


(a) Tariffs for DLCs of less than E1 capacity have been kept under forbearance.


(b) Ceiling tariffs for DLCs of E1, DS-3 and STM-1 capacities have been reduced.


(c) The DLCs of STM-4 capacity, tariff for which was under forbearance, have been brought under tariff regulation by way of prescription of ceiling tariffs.


With the implementation of the reduced ceiling tariffs, the customers seeking DLCs on the thin routes connecting small cities, remote and hilly areas etc. (i.e. the routes which are not sufficiently competitive) would be benefited.

Latest Reads
Prasar Bharati lacks content & marketing; open to tie-ups: MIB Minister

NEW DELHI: Conceding that Prasar Bharati is lagging in both content and marketing, Minister of State for Information & Broadcasting (MIB) Rajyavardhan Rathore on Wednesday said there was a need to bring in outside experts for improving these aspects.

Regulators I&B Ministry
MIB favours self-regulation, TRAI says some regulation mandatory

NEW DELHI: Even as he favoured the idea of self-regulation in the media, Minister for Information and Broadcasting (MIB) M Venkaiah Naidu stressed that “regulation should not become strangulation” and added the government wants to be a facilitator for creating a good business environment for the...

Regulators I&B Ministry
FM Phase III e-auction tomorrow

NEW DELHI: The e-auctions for the second batch of Radio FM Phase III has been put off by a day to 26 October 2016.

Regulators I&B Ministry
TRAI tariff order, interconnect regulations; date for responses extended

NEW DELHI: Stakeholders wanting to give in their reactions to the latest draft Tariff order for Digital Addressable Systems, the Quality of Service and Consumer Protection Regulations, and the draft interconnect regulations have been given time till 15 November 2016 to respond.

Regulators TRAI
FM P-III auction: EMD, bidders initial eligibility declared

NEW DELHI: Even as the day of the e-auction of the second batch of FM Phase III on 25 October 2016 approaches, the Government has released the earnest money deposit (EMD) by the pre-qualified bidders and the initial eligibility points (IEP) of each of these.

Regulators I&B Ministry
FM P-III second batch auction from 25 Oct; 14 in fray

NEW DELHI: The e-auction of the second batch of FM Phase III will commence on 25 October 2016 from 09.30am.

Regulators I&B Ministry
Free data, net neutrality: Discussion on TRAI paper to be held

Given the complicated issues around net neutrality, an open house discussion is to be held in Hyderabad this month on Telecom Regulatory Authority of India’s consultation paper on free data. The OHD will be held at Hotel Trident in the Telangana capital on 24 October 2016.

Regulators TRAI
Prasar Bharati advisor reviews DD marketing and policies

Former Ministry of Information and Broadcasting (MIB) Secretary and now Prasar Bharati advisor Sunil Arora yesterday asked Doordarshan to adopt the best policies of the industry, even as he approved the planned auction of slots on DD National.

Regulators I&B Ministry
Suresh Panda may be Prasar Bharati interim CEO; liberal DD auction criteria recommended

Suresh Panda, member (personnel) in Prasar Bharati is expected to take over as the acting chief executive officer of the pubcaster after the incumbent CEO Jawhar Sircar demits office on 4 November.

Regulators People

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories