TRAI has issued a regulation to unblock domestic leased circuits (DLCs). According to the regulation, licensed DLC service providers that have copper, fibre or wireless capacity are obligated to share their infrastructure with other service providers. The move is intended to provide cheaper bandwidth to internet service providers, IT companies and business process outsourcing companies.

While this is good news for most operators, unbundling the last mile goes against the interests of BSNL and MTNL, which have the largest DLC network. According to the two telecom PSUs, the new regulation will render them uncompetitive as it will lead to the hoarding of last mile connections by private sector companies.