BSNL wants broadband tariff cut revised

Bharat Sanchar Nigam Ltd (BSNL) today said it would approach the Telecom Regulatory Authority of India (Trai), seeking a revision of the 54 per cent tariff reduction in the 64 Kbps domestic bandwidth.

The state-run company, which is the sole provider of the 64 Kbps leased lines in the country, said the reduction was "below cost and could force it to discontinue the service".

BSNL executives said the PSU was yet to decide whether it would challenge Trai's move in the Telecom Dispute Settlement Appellate Authority (TDSAT) and added that the company did not have any objection to tariff cuts in other speeds.

As per the revised rates, which will come into effect from May 1, the annual ceiling for 64 Kbps leased lines would come down to Rs 44,000 from the present Rs 96,000.

"Other players have shied away from offering 64 Kbps domestic leased lines "� there were no profits here even under the earlier regime. We may be forced to stop issuing fresh 64 Kbps connections if the tariff is not revised," said a BSNL executive.

Company executives also found fault with the regulator's logic that, as domestic leased line business of an operator accounted for only 0.5 per cent to 2 per cent of the service provider's turnover, the reduction was unlikely to impact their business.

"Our stand is that we cannot support a capacity that is unviable. Even, the rise in volumes will not turn it around as the operational costs are far greater than the revised tariff ceiling," the executive added.