The Hindu : Business : VSNL moves tribunal on bandwidth

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Thursday, Mar 24, 2005

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VSNL moves tribunal on bandwidth

NEW DELHI, MARCH 23. The Tatas-owned VSNL has challenged the Telecom Regulatory Authority of India regulation on international bandwidth prices at the TDSAT (Telecom Dispute Settlement and Appellate Tribunal), saying the issue of international bandwidth prices should not be looked at in isolation.

Moving the tribunal against the TRAI regulation, which recommended reduction of international bandwidth prices by up to 70 per cent, VSNL is believed to have said in its petition that the issue of IPLC (International Private Leased Circuit) should not be seen in isolation vis-a-vis other costs like NLD and local loop.

IPLC is a small fraction of the total cost of any bandwidth-related operation, so it is unfair to see IPLC prices separately and regulate them, the petition says.

When contacted, VSNL officials declined to comment.

According to sources the case is listed for hearing tomorrow.

The VSNL petition says how can TRAI encourage competition if it starts regulating the prices when there are already three players — Reliance, Bharti and VSNL.

The petition mentions that TRAI's plea of pushing broadband through this move is erroneous since for increasing the use of broadband, the last mile has to be opened to private operators and this has not yet happened.

On March 11, the telecom regulator had announced a major reduction in international bandwidth prices by up to 70 per cent. — PTI

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