Top Story


Home >> International >> Article

VSNL implements revised leased line tariffs

Font Size   16
VSNL implements revised leased line tariffs

Videsh Sanchar Nigam started processing the first batch of orders from ISPs and corporates for Internet leased lines under its revised tariffs and payment scheme. This follows a ruling by the Madras High Court on January 4, allowing VSNL to implement its revised tariff and payment scheme for all customers, except Satyam Infoway and DishnetDSL - the two petitioners who have sought a stay on one aspect of the revised scheme which required ISPs to pay VSNL six months in advance.

Under the revised tariff scheme, Internet leased lines will be cheaper by 70 per cent. A 2 mbps leased line will now cost Rs 12.5 lakh per annum as compared with Rs 41.8 lakh earlier. Along with the revised tariffs VSNL has also introduced a new payment scheme whereby ISPs and corporates alike will be required to pay the tariff six months in advance with a 20 per cent rolling deposit.

The new tariffs became effective from January 1, 2001, but VSNL was unable to implement the same because of the petition filed by Satyam Infoway and DishnetDSL, both Chennai-based ISPs, soon after VSNL announced the revised tariffs in October last year.

The six-month advance payment clause is not the only aspect of the scheme that has irked several ISPs. Close on the heels of announcing the tariffs last year, VSNL also announced that ISPs would no longer be eligible for the 15 per cent discount they enjoyed on leased line rates.

For VSNL itself, revenues from Internet leased line will reduce substantially. For every 45 mbps line that it leases out it will receive Rs 2.6 crore per annum. The loss in per leased line revenue will be more than compensated by the additional volumes that will be fuelled by the higher demand.


Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compete on a global scale

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

Meera Iyer tells exchange4media that in FY 2016/17, bigbasket clocked a revenue of Rs 1,400 crore. The online supermarket currently stands at 70,000 orders a day, with operations in 25 cities.

CMO, Kashyap Vadapalli on the start-up’s marketing play, why it has decided to stay away from IPL and response to its furniture rental apps

Ushering the launch with a campaign titled ‘The New Way to Get Rich’ showcasing how technology gets millennials closer to their financial dreams

Ogilvy and Love Matters conceptualised a campaign that aimed to change the conversation and imagery that is associated with the LGBTQ community and lesbians in particular