Higher tariff ceiling for managed leased networks

After reducing the tariff ceiling for domestic leased lines by 70 per cent, the Telecom Regulatory Authority of India (Trai) today announced a distinction in tariffs between leased circuits of the classical kind and the managed leased line network (MLLN).

Trai has specified a higher ceiling for MLLN leased circuits owing to additional costs associated with this technology and also because of the value-added features it offers compared with classical leased circuits. MLLN can be offered on capacities between 64 Kbps and a maximum of 2 Mbps.

MLLN can provide high-speed leased lines and supports service provisioning, network optimisation, planning and service monitoring. It also supports features such as end-to-end circuit creation and monitoring, circuit loop test and fault isolation, automatic re-routing of traffic in case of trunk failure and software programmability.

As per the revised tariffs, a 64 Kbps (for 500 kms and above) connection costs a maximum of Rs 44,000 per annum. The regulator's specifications for the two technologies imply that only domestic leased circuits of the classical kind will be charged at Rs.44,000.

MLLN leased lines having the same capacity will now be charged at a higher rate of Rs 51,000. Similarly, for 128 Kbps, classical leased lines will cost Rs 79,200 annually, while the corresponding rates for MLLN will be Rs 91,800. For 256 Kbps, MLLN will now be charged at Rs 158,100 per annum, which is Rs 21,700 more than the price for classical lines.

For capacities higher than 256 kbps and below 2 Mbps, no distinction has been made between the two technologies owing to low and specialised demand for these capacities, Trai said.

Justifying the move, Trai officials said the cost-based higher ceiling would encourage deployment of the more powerful MLLN technology by service providers, and would improve efficiency of businesses that subscribe to this service.

"We want to encourage new technologies that are far superior than existing conventional technologies. This move is an indicator that we will take necessary steps to promote and support technological advances," said an official.

"Those wishing to subscribe to MLLN must be ready to pay a higher price ceiling as compared with that of the classical circuits. The choice rests on the subscriber. The tariff framework also allows the possibility of lower tariffs," the official said.