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Tag: IPLC

  • Trai releases consultation paper on revision of domestic leased circuits’ tariffs

    Trai releases consultation paper on revision of domestic leased circuits’ tariffs

    NEW DELHI: Telecom Regulatory Authority of India (Trai) has released a consultation paper proposing a downward revision of tariff applicable for Domestic Leased Circuits.

    The Authority in its document, Broadband India: Recommendations of Accelerating Growth of Internet and Broadband Penetration (April, 2004) has identified the high prices of domestic leased circuits and international circuits as one of the major hurdles preventing growth of internet and broadband services.

    The factors necessitating for such an exercise include the need to bring down the cost of bandwidth in the country to make user industries of bandwidth globally competitive and to promote broadband and internet access, says a Trai release.

    The release has listed out some key points in the consultation paper. It says, the cost based leased line tariffs have been calculated using an optical fiber cable system with STM1 as benchmark capacity. The methodology of cost estimation adopted by Trai in this consultation paper is that of a ‘bottom-up approach’. The cost of various operators was taken into account for calculating the cost of providing the domestic leased circuit. The revised ceiling tariff for capacities of 2 Mbps and 64 Kbps for ‘beyond 500 kms distance’ comes to Rs 8,20,000 and Rs 24,000 respectively.

    The proposed revision in tariff in respect of 2 Mbps and 64 Kbps for beyond 500 kms distance would mean a reduction of about 63% and 75% respectively from the existing ceiling tariff in respect of these categories.

    It is expected that higher capacities i.e. above 2 Mbps will dominate the demand structure in future. Keeping this in view, price multiples for DS-3 and STM1 capacities have been proposed as eight times and twenty three times respectively the price of E1 capacity. This is based on the fact that there are scale economies arising out of higher capacities and also based on the prevailing price-capacity multiples observed elsewhere in other markets.

    Towards implementing the initiatives of ‘Broadband India’, the authority has already issued a consultation paper on ‘Fixation of Ceiling Tariff for IPLC’. This consultation paper proposing revision of existing tariff for domestic leased circuits is sequel to the efforts of the authority in reducing the cost of bandwidth in the country, adds the release.

    The newly released consultation paper is available on Trai’s website (www.trai.gov.in). Trai has requested all stakeholders to submit their comments and views on any or all issues raised in this paper on or before 15 July 2004.

  • Data Access, Intelsat deal for satellite capacity

    NEW DELHI: Data Access, which claims to be the country’s fastest gowing telecom company has signed a multi-million dollar agreement with Intelsat. The deal will support Data Access’ International Private Leased Circuits (IPLC).
    Under this agreement, Data Access will utilise satellite capacity from Intelsat worth 100 Mbps over a multiyear period.
    The deal marks Data Access’ foray into the international IPLC business between India and Europe. The alliance will significantly boost Data Access’ current capacity of 1024 Mbps on C & KU band to 1200 Mbps. Data Access will utilize capacity on multiple Intelsat transponders on the 704 satellite located at 66° E in geostationary orbit. Connectivity will be established from Data Access’ Network Operating Centre (NOC) in Delhi to Intelsat’s teleport in Fuchsstadt, Germany, via satellite. Traffic will be routed from Germany on fiber backhaul to Intelsat’s London Point of Presence (PoP) to connect with Data Access’ London PoP.
    The founder and MD of Data Aceess Siddhartha Ray has been quoted in an official release saying, “We are glad to be working with Intelsat and look forward to a constructive and long-term relationship. The market potential of switched IPLC business in this sector is getting stronger with current volumes reaching 18 million minutes per year and estimated to go up to 90 million minutes per year by the end of 2006. Our existing world-class ILD infrastructure coupled with additional satellite capacity will further widen our horizons to enter other lucrative business segments.”
    With a unique ‘hybrid’ IP based network and a dedicated lean management team Data Access has set itself the goal of being the first global telecom player from the country. This year, it has become the first-ever Indian telecom company to be nominated for the prestigious ‘World Communication Awards’ under the ‘Best Regional Carrier category, rubbing shoulders with fellow nominees Sing Tel, Belgacom, COLT Telecom and Easy Net. The company has rapidly expanded beyond our shores to developed and emerging markets such as the US, UK and Sri Lanka.