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Comparative Analysis Of International Private Leased Circuit (IPLC)
Tariffs For Pakistan & India




SPEED Pakistan
( Lacs/Year )
India
( Lacs/Year )
India *
( Lacs/Year )
E1 ( 2 Mbps ) 14.4 20.0 13.0
D3 ( 45 Mbps ) 225.7 358.0 104.0
STM1 ( 155 Mbps ) 547.2 997.0 299.0



Conclusions:
Comparison of International Private Leased Circuit (IPLC) rates between Pakistan and India show that between March 17 2005 and Sept 16th 2005, IPLC rates were higher in India than Pakistan. Tariffs in India for E1 circuits were 38% higher, for DS3 circuits were 59% higher and tariffs for STM1 circuits were 83% higher than the equivalent rates provided by the PTCL in Pakistan.

(*) These are the downward revised tariff ceilings on IPLCs introduced by the Telecom Regulatory Authority of India through the 34th and 39th Amendments to it's Telecom Tariff Order. They were immidiately challenged by Tata owned VSNL (which controls 80% of the bandwith and 6 out of the 7 undersea fibre cables connecting India to the world) in the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on Sept 12th 2005, four days before the new tariffs were to go into effect. Their legal standing will now be decided in court.

If these revised IPLC tariffs by TRAI do become law and are implemented in India, the situation will then stand reversed. The IPLC rates in Pakistan will then be higher than India, by 11% (for E1), 117% (for D3) and 83% (for STM1).



References:
01. Telecom Regulatory Authority of India, Press Release No. 24/2005, Dated 11th March 2005. ( html , pdf )
02. Telecom Regulatory Authority of India, Press Release No. 71/2005, Dated 8th Sept 2005. ( html , pdf )
03. Enhancing Competition in the IPLC Market: A Letter from the ISP Association of India to the TRAI, Dated 6th July 2005. ( html )
04. PTCL Tariff for Full Circuit IP Connectivity via Flag V-POP facility for Customer in Pakistan.( html )
05. India Times (24-03-2005): VSNL contests Trai order, moves TDSAT ( html )
06. Business Standard (14-09-2005): VSNL contests Trai order, moves TDSAT ( html )