Telcos, tech firms clash over India's enterprise internet

Trai is reviewing DLC tariffs after more than a decade, a move which could slash price caps

- Jatin Grover

Revenue service providers' earnings from DLCs in FY 2023-24 was about ₹13,300 crore, which is nearly 60% higher than the revenue earned in FY 2012-13.

(BLOOMBERG)

India’s telecom giants and global technology firms are locked in a tussle over pricing and regulation of the country’s business internet backbone.

At the centre of the clash are Domestic Leased Circuits (DLCs)—dedicated, high-security broadband lines used by banks, data centres and enterprises. The Telecom Regulatory Authority of India (Trai) is conducting its first review of these tariffs in more than a decade, which could slash price caps that remain unchanged since 2014.

The total revenue earned by service providers from DLCs in FY 2023-24 is around ₹13,300 crore, which is approximately 60% higher than the revenue earned in FY 2012-13, according to Trai.

Mobile operators, including Reliance Jio and Bharti Airtel, are defending their turf, arguing that government intervention would amount to a subsidy for Big Tech. They contend that the market is already competitive, citing massive private investments in fibre and spectrum that other players haven't matched.