Trai cuts local bandwidth tariffs

Close on the heels of reducing the tariff for international bandwidth, Trai today slashed tariff for domestic bandwidth (domestic leased circuit) between 3-70% - a move that could boost broadband penetration in the country.

The telecom regulator has reduced the ceiling tariff for 64 kbps, 128 kbps, 256 kbps by 54% to Rs 44,000, Rs 79,000 and Rs 1.36 lakh, respectively, when compared with the existing market rate of Rs 96,000, Rs 1.72 lakh and Rs 2.97 lakh, respectively, Trai said in a release today.

The revised ceiling tariff for e1 (speed of 2 mbps) has been cut 3% to Rs 8.50 lakh from the market rate of Rs 8.80 lakh. While tariff for ds-3 (45 mbps) has been reduced 67% to Rs 62 lakh compared to the existing market rate of Rs 1.85 crore, stm-1 (155 mbps) tariff has been cut 70% to Rs 1.65 crore from the existing market rate of Rs 5.54 crore, it said.

The ceiling tariff prescribed by the order will take effect from May 1, 2005. Trai will review the situation with regard to developments in the DLC segment after a year, the release said.