VSNL files an appeal before TDSAT against a TRAI order cutting tariffs for IPLCs

Videsh Sanchar Nigam Limited (VSNL) has filed an appeal before the Telecom Disputes Settlement Appellate Tribunal (TDSAT) against a TRAI order cutting tariffs for international private leased circuits (IPLCs). TRAI recently effected a 70 per cent reduction in IPLC, arguing that this move would reduce international bandwidth costs. VSNL, however, claims that IPLC constitutes only 4-5 per cent of the total cost for internet service providers while last mile access constitutes 35-50 per cent. The company therefore feels that the issue of last mile access should be addressed by the regulator. It also believes that lower international bandwidth prices will affect the viability of its business. TRAI has asked for time to reply to VSNL’s appeal.