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भारतीय दूरसंचार िविनयामक (cid:366)ािधकरण
Telecom Regulatory Authority of India
Pre-Consultation Paper on
Review of Tariff for Domestic Leased Circuits (DLCs)
New Delhi, India
29.04.2025
Tower F, NBCC World Trade Centre, Nauroji Nagar, New Delhi-110029Written inputs/ comments on the Pre-Consultation Paper titled ‘Review of
Tariff for Domestic Leased Circuits (DLCs)’ are invited from stakeholders by
19th May 2025. The inputs/ comments may be sent, preferably in electronic
form, to Advisor (Financial & Economic Analysis), TRAI on the email ID
advfea2@trai.gov.in, which will be posted on the TRAI’s website
(www.trai.gov.in).
For any clarification/ information, Shri Vijay Kumar, Advisor (Financial &
Economic Analysis), TRAI, may be contacted at Telephone No. +91- 11-
20907773.
Page 2 of 4Pre-consultation Paper on
“Review of Tariff for Domestic Leased Circuits (DLCs)”
1. The Section 11(2) of Telecom Regulatory Authority of India Act, 1997 (as
amended) inter alia states that-
“Notwithstanding anything contained in the Indian Telegraph Act, 1885 (13 of
1885), the Authority may, from time to time, by order, notify in the Official
Gazette the rates at which the telecommunication services within India and
outside India shall be provided under this Act including the rates at which
messages shall be transmitted to any country outside India.”
2. The Authority notified the Telecommunication Tariff Order (57th & 58th
amendments) prescribing the ceiling tariffs for Domestic Leased Circuits (DLCs)
of E1 (2 Mbps), DS3 (45 Mbps), STM-1 (155 Mbps) and STM-4 (622Mbps)
capacities, while keeping the tariffs for domestic leased circuits of other speeds/
capacities under forbearance.
3. The Authority is examining the need for reviewing the existing ceiling tariffs for
DLCs. Any proposed review will require a thorough analysis and a careful
consideration of key aspects, including ensuring fair and affordable pricing,
promoting healthy competition in the market, evolving technology and market
dynamics, and fair returns for service providers. This exercise can only be
achieved through close cooperation among all stakeholders. Therefore, to
facilitate the proposed review, the Authority invites all stakeholders to
participate in the present pre-consultation process by submitting relevant
issues, concerns and suggestions pertaining to the existing ceiling tariff of
Domestic Leased Circuits.
4. While submitting inputs, stakeholders may consider the relevant
Telecommunication Tariff Orders (TTO), including, but not limited to the
following TTOs:
a) The Telecommunication Tariff Order, 1999
Page 3 of 4b) The Telecommunication Tariff (36th Amendment), Order, 2005
c) The Telecommunication Tariff (57th Amendment), Order, 2014
d) The Telecommunication Tariff (58th Amendment), Order, 2014
5. The Authority encourages all stakeholders to give their views on the following
aspects; without limiting themselves to these issues alone:
a) Development trends and current status of the DLC market in the country.
b) Effectiveness of the existing tariff framework for Domestic Leased Circuits
(DLCs).
c) Prevailing tariff structures for DLCs offered by service providers across
different technologies, bandwidths and distances.
d) Impact of new technological advancements on the evolving DLC ecosystem
and associated tariff considerations.
e) Disparities in tariffs across different routes and geographical regions.
f) Approaches and methodologies adopted by service providers for
determining tariffs of DLCs (presently under forbearance).
g) Evolving customer requirements and expectations in relation to DLC
services.
h) Challenges faced by small service providers, customers or new entrants in
the current DLC market.
i) Global best practices in DLC tariff frameworks and their potential relevance
for the Indian context.
6. Inputs/Comments received from stakeholders would be analysed and
considered by the Authority to examine the need for a review of DLC tariffs.
Page 4 of 4