Reliance may cut bandwidth prices by 70%

Prices can come down to $1mn/STM of 155mbps from current level of $5mn.

Reliance Infocomm said it could reduce prices of international bandwidth by up to 70 per cent if the access to bottleneck facilities (landing station), currently with Videsh Sanchar Nigam Ltd (VSNL), was opened up for competition.

"We can bring the prices down to $1 million per Synchronous Transport Module (STM) of 155 mbps international bandwidth from the existing $5 million or so, provided bottleneck facilities are opened up at fair market prices," Manoj Modi, executive director, Reliance Infocomm, said yesterday.

This would translate into a reduction in the prices of international bandwidth by about 70 per cent, Modi said.

He added that this would benefit the infotech-enabled services sector, especially the business process outsourcing segment.