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TRAI for regulation in domestic bandwidth market

Telecom regulator TRAI is understood to be in favour of tariff regulation in the domestic bandwidth market to remove bottlenecks for effective competition in the segment.

india Updated: Nov 20, 2006 01:53 IST

After regulating the international bandwidth prices, telecom regulator TRAI is understood to be in favour of tariff regulation in the domestic bandwidth market to remove bottlenecks for effective competition in the segment.

Bandwidth is the medium of carriage of data and voice services across countries in the world (IPLC) or across the country (Domestic Leased Circuit).

It is appropriate to continue with the tariff regulation in the DLC market until such time the competition becomes adequate and effective. The long-term goal of the Authority is to establish effective competition in the sector such that regulation of tariff may not be required, a TRAI official said.

There are evidences of lack of competition in the 'local lead' (last mile access) within city circuit segment.

The non-availability of local leads, which has been represented by various stakeholders/service providers, appears to be the main bottleneck for promotion of competition in DLC market, the official said.