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Telcos oppose ISPs offering domestic leased circuits – What does it mean for enterprise connectivity?
India’s major telecom operators such as Reliance Jio, Bharti Airtel, Vodafone Idea, and BSNL have raised concerns about allowing Internet Service Providers (ISPs) to offer Domestic Leased Circuits (DLCs).
Domestic leased circuits are dedicated high-speed data connections used by businesses, banks, data centres, and government organizations for secure and reliable internet connectivity.
According to the telcos, allowing ISPs to provide these services could create an uneven regulatory environment. Telecom operators currently invest heavily in infrastructure such as fiber networks and spectrum, and they argue that ISPs operate under lighter regulations.
The telecom companies have also asked the regulator to maintain tariff forbearance, meaning that prices for these services should be determined by market competition rather than strict regulation.
This issue has come up as the Telecom Regulatory Authority of India (TRAI) is reviewing DLC tariffs for the first time in more than a decade. The review could change how these enterprise connectivity services are priced in the future.
Some telecom companies believe that introducing uniform pricing rules could reduce flexibility and affect investments in next-generation technologies. At the same time, the discussion may influence how enterprises access high-speed connectivity in India.
What do you think?
Should ISPs be allowed to offer domestic leased circuits, or should this remain limited to telecom operators?