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Nasscom cheers bandwidth tariff cuts

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CIOL Bureau
New Update

BANGALORE: Nasscom welcomes the decision of Telecom Regulatory Authority of India (TRAI) to reduce ceiling tariffs for higher and lower capacities of international bandwidth by about 70 percent and 35 percent respectively. In response to the move, Nasscom president Kiran Karnik said, "this move by TRAI has given a positive signal to the potential investors and MNCs, and will help in further enhancing India's competitive advantage in the ITES-BPO and IT industry in the global market."



Bandwidth is a critical component of the IT/ITES-BPO industry and Nasscom said it had made a series of representations to TRAI and DoT earlier, highlighting the criticality of the pricing issue, particularly at higher levels of bandwidth capacity. Due to higher tariff and capacity issue, Indian IT companies and MNCs were facing constraints in scaling up their operations, noted Nasscom.



"We are delighted that TRAI has accepted our recommendations and we particularly welcome the steep drop in prices of higher capacity bandwidth. This now gets India closer to competitive pricing in telecom as compared with other offshoring destinations," said Karnik.



Nasscom said it is hopeful that TRAI will take note of its other recommendations with respect to reduction in domestic tariff rates to make them comparable to international standards and resolving the interconnectivity issues between NLD and ILD providers.

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