New Delhi, Sept 13: In a move that will make domestic bandwidth available at cheaper prices for internet service providers and other users such as BPOs and IT companies, TRAI today issued a regulation to boost competition and reduce price for end-customer.
These regulations would benefit both the customers and the service providers, is expected to enhance competition, allow consumers a wider choice of service providers and make domestic leased circuits (read bandwidth) available at a reasonable price.
For service providers, this regulation opens up the possibility of meeting customers' demand for end-to-end bandwidth from other service providers if such a need arises, TRAI said.
In 2005, TRAI had issued a ceiling for tariffs on domestic bandwidth prices. Some policy initiatives taken by the government have resulted in greater competition in domestic bandwidth market.
However, in markets where some service providers rely on essential facilities provided by others for delivery of their services, it is appropriate to establish a framework to ensure that the market functions effectively. This regulation is a step in this direction, TRAI said.
As per a conservative estimate, the aggregate DLC market (including VPN) would be Rs 3,000 crore by 2008 and grow to Rs 4,500 crore by 2010.
Bureau Report
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