Trai order on global bandwidth set aside

In a setback to the telecom regulator, Trai, the Telecom Dispute Settlement and Appellate Tribunal (TDSAT) today set aside the order on price reduction of international bandwidth which was challenged by VSNL.

Telecom Regulatory Authority of India had lowered international bandwidth prices by up to 70 per cent projecting that the move would help tariff reduction of Internet and broadband services besides boosting their penetration.

Setting aside Trai's order, TDSAT asked the regulator to have a relook at the entire exercise and share the full facts and basis of calculation with VSNL in a transparent manner.

VSNL, a major bandwidth provider, had challenged the order saying international bandwidth prices cannot be looked at in isolation and had questioned Trai's methodology on arriving at the price ceilings.

According to VSNL, the price ceiling set by Trai was below the basic cost of the company.

When contacted, D P S Seth, member, Trai, told PTI, "We shall study the order once we receive it and take appropriate action."

Meanwhile, the international bandwidth price order, which came into effect from April 1, 2005, has been scrapped retrospectively.