TDSAT cancels order to cut intl bandwidth tags

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

Trai had lowered international bandwidth prices by up to 70% projecting that the move would help tariff reduction of Internet and broadband services besides boosting penetration.

Setting aside the 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 for arriving at the price ceilings. According to VSNL, the price ceiling set by Trai was below the basic cost of the company.

The International Bandwidth Price Order, which came into effect from April 1, 2005, has been scrapped retrospectively.