Vsnl Plans 30% Cut In Global Leased Line Rentals

Videsh Sanchar Nigam Ltd (VSNL, Indias international telephony carrier) is planning a 30 per cent drop in rental charges on its international leased line data circuits. It has asked permission of the department of telecommunications (DoT) to decrease the rates.

In a proposal before DoT, the carrier has recommended that the annual rental for a 64 kbps (kilobits per second, a measure of capacity) international leased circuit be reduced from Rs 8.5 lakh to Rs 6 lakh. A similar reduction is planned for higher capacity circuits, DoT sources confirmed.

The department is likely to give VSNL the go-ahead for the reduction in rental charges soon, they added. Telecom secretary A V Gokak said the department was considering the drop and would come out with a promotional charge soon.

 

The reduction in charges for the international leased circuits is likely to bring down the input costs for Internet service providers (ISPs) planning to start services in the country soon. DoT allowed the entry of private ISPs in the Internet policy cleared last month. Until now, VSNL was the only ISP in the country.

Most private ISPs are likely to ask for a 2 Mbps connection from VSNL. (The monopoly of the carrier has been retained for providing Internet international gateway access to the ISPs.) A 2 Mbps connection