Issues have arisen between foreign long distance players and their Indian counterparts over the charges pertaining to cable landing stations.
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As per news reports, foreign companies have expressed their concerns on this subject, on grounds that the fee fixed by Indian players is significantly higher than global standards. The players have asked the Telecom Regulatory Authority of India (TRAI) to intervene and resolve the issue.
However, Indian players are not in favour of any regulatory interference.
It is believed that cable landing charges make up 10 per cent of overall bandwidth cost. In India, the situation is very different, as it comprises over 45-50 per cent.
In this context, foreign players have informed the regulator that this prohibits the availability of bandwidth in the country.
Another issue raised by the companies pertains to the fact that the owners of these landing stations are permitted to determine access charges as per their own discretion.
In response, Indian players have argued that this amount entails the cost of setting up the landing station, as well as subsequent operational expenditure. These companies fixed the amounts at Rs 600 million and Rs 50 million respectively.
