The Telecom Regulatory Authority of India (TRAI) has reduced ceiling tariffs for domestic leased circuit by up to 60 per cent. The new tariff regime will come into effect from August 1, 2014.

The telecom regulator has reduced ceiling tariffs for Point-to-Point Domestic Leased Circuits (P2P-DLCs) of E1 (2Mbps), DS3 (45 Mbps) and STM-1 (155 Mbps) capacities and has brought DLCs of STM-4 (622 Mbps) capacity under tariff regulation. Further, the tariffs for DLCs with speed of less than 2 Mbps has been kept under forbearance.

For E1 links having length of 5-500 km, the ceiling tariffs have been reduced from Rs 850,000 per annum to Rs 341,000 per annum. For DLC with speed of 45 Mbps, tariffs have been cut from Rs 6.15 million per annum to Rs 2.65 million per annum. However, annual tariffs for leased circuits with 622 Mbps speed have not been revised.

For low distance (less than 5 km) for 2 mbps DLC, TRAI has reduced ceiling tariff by 29 per cent to Rs 12,086 per annum. In same band, for leased circuit of less than 50 km, ceiling tariffs on 45 mbps line has been revised downwards by 12 per cent to Rs 584,000 and by 10 per cent on 155 mbps to Rs 1.6 million per annum.