According to news reports, TRAI is expected to come out with revised rates for internet leased line services. The regulator had earlier issued a consultation paper, which proposed a 70 per cent reduction in leased line charges, a reduction in the fee for 64 kbps leased lines from Rs 96,000 to Rs 24,000 per annum, and a cut in leased line charges for 2 Mbps lines from Rs 2.2 billion to Rs 850,000. While this move would be popular with the private sector which will benefit from lower rates, it is being viewed differently by Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL). Both state-owned companies feel that a drastic reduction in leased line charges will cut into their revenues and make the leased line business unviable for them.
