TRAI Seeks Stakeholder Feedback on Review of Domestic Leased Circuit Tariffs

This move underscores the Authority’s commitment to ensuring that telecom tariffs remain fair, competitive, and in tune with the rapidly evolving technological and market landscape.

The Telecom Regulatory Authority of India (TRAI) has initiated a critical step toward revisiting the pricing framework for Domestic Leased Circuits (DLCs) by releasing a Pre-Consultation Paper titled "Review of Tariff for Domestic Leased Circuits (DLCs)." This move underscores the Authority’s commitment to ensuring that telecom tariffs remain fair, competitive, and in tune with the rapidly evolving technological and market landscape.

The primary objective behind this pre-consultation exercise is to seek comprehensive inputs, concerns, and suggestions from a wide range of stakeholders, including telecom service providers, enterprises, industry associations, government bodies, and consumers. Specifically, TRAI aims to gather insights on the existing ceiling tariffs for DLCs, which are pivotal for the delivery of high-quality leased line services across India.

Domestic Leased Circuits serve as dedicated communication links that enable businesses to ensure robust, secure, and uninterrupted data transfer between offices, branches, or partners. The pricing of these circuits has significant implications for enterprise connectivity, digital transformation initiatives, and the overall competitiveness of India's telecom infrastructure.

Call for Stakeholder Participation

TRAI has emphasized the importance of broad-based participation in this process. Stakeholders are encouraged to critically evaluate the current regulatory framework, identify any bottlenecks or challenges, and propose actionable reforms that could enhance the quality, affordability, and availability of DLC services.

Written comments and suggestions on the Pre-Consultation Paper must be submitted by May 19, 2025. The inputs received will form the foundational basis for a structured consultation process, leading to a potential revision of the prevailing DLC tariff structure.

Submission Guidelines

Stakeholders are requested to send their comments preferably in electronic form to the following email address:

📧 advfea2@trai.gov.in

In case stakeholders require any clarification or further information regarding the consultation process or the issues involved, they can reach out to:

📞 Shri Vijay Kumar Advisor (Financial & Economic Analysis), TRAI Telephone: +91-11-20907773

Broader Implications

This consultation exercise is part of TRAI’s continuous endeavor to foster a dynamic and competitive telecom environment in India. A revision of DLC tariffs could potentially lower connectivity costs for businesses, stimulate demand for high-capacity leased circuits, and support the government's broader digitalization goals, including initiatives under Digital India and BharatNet.

Moreover, with the rapid proliferation of data-intensive technologies such as 5G, IoT, cloud computing, and AI-driven services, a modernized and competitively priced DLC framework is essential for maintaining India's position as a global digital hub.

Next Steps

After the receipt and analysis of comments from stakeholders, TRAI will consider the findings to determine the necessity, scope, and potential directions for revising the DLC tariff regime. This could eventually lead to the release of a formal Consultation Paper for deeper analysis and structured discussion with all stakeholders.

TRAI has reiterated its commitment to transparency, inclusiveness, and evidence-based policymaking, ensuring that any final regulatory decisions reflect the interests of all market participants and the broader economy.