- DLC Tariff Review Pits Telcos Against Big Tech

India’s telecom operators and global technology firms are locked in a regulatory battle over Domestic Leased Circuits (DLCs)—dedicated broadband lines critical for banks, data centres, and enterprises. The Telecom Regulatory Authority of India (TRAI) is reviewing DLC tariffs for the first time in over a decade, potentially slashing ceilings that have remained unchanged since 2014. The outcome could reshape pricing transparency, competitive dynamics, and control over India’s enterprise internet backbone. Telcos’ Position - DLC revenues: ₹13,300 crore in FY24, ~60% higher than FY13. - Operators (Reliance Jio,

) argue: - Market is competitive, backed by heavy private investment in fibre and spectrum. - Price ceilings would amount to subsidies for Big Tech and ISPs. - COAI submission (2 March): Prices should remain market-driven, negotiated directly between enterprises and providers. Tech Firms’ Position - Companies (Google, Amazon, Meta, Zoom) and Broadband India Forum (BIF) argue: - Current system lacks transparency, enabling near-monopoly pricing. - Smaller ISPs disadvantaged, especially in remote/hilly areas where tariffs remain high. - Zoom submission: TRAI should publish anonymised billing data to help customers negotiate fair prices. Tariff Context - TRAI ceilings (2014): Range from ₹3.41 lakh/year for 2Mbps to ₹1.8 crore/year for 622Mbps over 500km. - Providers already offer 30–99% discounts below ceilings, suggesting outdated benchmarks. - Debate centres on one-time/local lead charges rather than bandwidth rates. Outlook - DLCs operate at bandwidths from 2Mbps to 10Gbps, forming the backbone of enterprise connectivity. - TRAI’s review could reset ceilings, enforce transparency, and reshape cost structures. - Telcos fear margin erosion; tech firms see opportunity for fairer access. - The decision will determine who controls India’s “private highways” of enterprise internet.