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VSNL slashes leased line rates

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DQW Bureau
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DQW News Bureau

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Videsh Sanchar Nigam Ltd (VSNL), the country's prime Internet service provider announced a drastic slash in leased line charges. VSNL said it proposed to cut rentals for private international leased circuits by about 75 per cent and leased Internet lines by about 70 per cent with effect from January.

"We believe that this is a very good thing for the industry in general. It is a positive step and would bring down the overall prices and accelerate growth," said David Appasamy, spokesman for Satyam Infoway. Appasamy added that the details were being worked out by ISPs, and the exact amount of the price cut would depend on individual strategies of companies.

He also said that IT enabled services like call centers would also benefit from these measures taken by

VSNL.

"Reducing the cost of bandwidth access is a logical step to promote the quality of Internet connectivity in the country in line with international standards," Kunwar said in a statement," said Atul Kunwar, CEO, Mantra Online.

Most Indian ISPs now charge roughly Rs 3,500 ($ 75) to Rs 4,500 a year for unlimited dial-up access, but the customers must pay the telephone charges. A handful of free ISPs rely on advertisements to provide access to customers. Now that VSNL has announced sharp reductions in its leased line charges, Indian Net customers can hope for further reductions in access rates because of cheaper bandwidth costs.

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