TRAI (Telecom Regulatory Authority of India) has decided to cut some slack for users of dedicated broadband lines, having reduced them by up to 60 percent. This change will come into effect from August 1, 2014, onwards and will definitely increase the usage of broadband a great deal.
Dedicated broadband lines which are also known as domestic leased circuits (DLCs) are actually exclusive connections between service providers to interested customers who are ready to pay high prices. They are not meant for the general public as such. These lines are crucial to services including e-commerce, e-governance, BPOs and more.
The reduction of ceiling tariffs by TRAI applies to Point-to-Point Domestic Leased Circuits (P2P-DLCs) of capacities ranging from E1 (2Mbps), DS3 (45Mbps) and STM-1 (155Mbps). Apart from this, this new change has also now brought DLCs from the STM-4 (622Mbps) capacity under tariff regulation.
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TRAI has said that it is reducing charges on 2Mbps leased lines of 5kms to 500kms from Rs 8.5 lakhs per annum to Rs 3.41 lakhs per annum. Furthermore, for 45Mbps connections, the rate will be dropped considerably from to Rs 26.54 lakh per annum from Rs 61.59 lakh per annum.
As for those leased circuit lines which have the capacity of 622Mbps, TRAI has not made any alterations. Moreover, the body has also revealed that DLCs of less than 2Mbps have been left under forbearance. To have a complete look at all the new changes introduced by TRAI for the ceiling charges of dedicated broadband lines, you can follow this link.