Software exporters to pay 50% less for bandwidth
The government is planning to reduce the bandwidth tariffs at the Software Technology Parks of India (STPI) by upto 50 per cent.
By Niranjan Bharati, TNN |
NEW DELHI: In a move that would give the small IT exporters a reason to cheer, the government is planning to reduce the bandwidth tariffs at the Software Technology Parks of India (STPI) by upto 50%.
Cost of bandwidth would come down to Rs 7 lakh per two mega bytes per second (Mbps) from Rs 11-14 lakh per 2 Mbps.
Reduction in cost of bandwidth will enable STPI units to save Rs 30 crore from their estimated bill of Rs 60 crore per annum. Bandwidth charges constitute about 5% to 10% of the total data export cost for an IT company, and it goes up to 15% in case of companies involved in BPO operations.
STPI sources bandwidth from the telecom companies in bulk and supplies it to software firms involved in the business of data export. Bandwidth tariffs at STPIs vary between Rs 11 lakh to Rs 14 lakh per Mbps depending on location of the park.
The government plans to bring down the charge to a uniform level of Rs 7 lakh per 2 Mbps, an official in the department of information technology (DIT) said. “Exporters were getting unnecessarily penalised for going to smaller cities as the charges were comparatively higher there, considering this in mind the government has proposed to bring down the charges at a uniform level across the country,” the official said.
“This is a very welcome move and is aimed at bringing bandwidth costs to the level of our competitor countries, including China, Taiwan and Thailand. The step would certainly help the industry,” Nasscom president Kiran Karnik said.
STPI currently sources about 700-800 Mbps bandwidth from VSNL, Reliance Communications and Bharti Airtel at market prices and then lends it to the small players, mainly in the field of BPO at competitive costs.
“It is uneconomical for the smaller companies to get the bandwidth directly from the telecom companies as their requirement is very less. Also, STPI makes the bandwidth available to the companies on a good technological platform which they cannot get if they source it directly from telcos,” an STPI official said.
The move is expected to give a relief to the exporters who have been hit hard due to rupee appreciation in the recent past.
“We welcome the government’s move to reduce the bandwidth charges from STPI, but it surely needs to do more,” Electronics and Software Export Promotion Council (ESC) executive director DK Sarin said. He, however, added that the number of data exporting companies at the STPI is not very big and the government should also take steps for such companies who are operating outside the scheme.
The tariff reduction would, however, not affect the government’s finances as the rates have come down in the recent past following which the telecom majors have also reduced the charges. “We align ourselves to the market conditions and reduced these charges in certain specific cases,” a Bharti spokesperson said.
REASON TO CHEER
Cost of bandwidth would come down to Rs 7 lakh per 2 Mbps from Rs 11-14 lakh per 2 Mbps
Reduction in bandwidth cost will enable STPI units to save Rs 30 cr from their estimated bill of Rs 60 cr per annum
Bandwidth charges constitute 5-10 % of the total data export cost for IT company, and it goes up to 15% in case of companies involved in BPO operations
Move to bring bandwidth costs to the level of competing countries, including China, Taiwan and Thailand
Cost of bandwidth would come down to Rs 7 lakh per two mega bytes per second (Mbps) from Rs 11-14 lakh per 2 Mbps.
Reduction in cost of bandwidth will enable STPI units to save Rs 30 crore from their estimated bill of Rs 60 crore per annum. Bandwidth charges constitute about 5% to 10% of the total data export cost for an IT company, and it goes up to 15% in case of companies involved in BPO operations.
STPI sources bandwidth from the telecom companies in bulk and supplies it to software firms involved in the business of data export. Bandwidth tariffs at STPIs vary between Rs 11 lakh to Rs 14 lakh per Mbps depending on location of the park.
The government plans to bring down the charge to a uniform level of Rs 7 lakh per 2 Mbps, an official in the department of information technology (DIT) said. “Exporters were getting unnecessarily penalised for going to smaller cities as the charges were comparatively higher there, considering this in mind the government has proposed to bring down the charges at a uniform level across the country,” the official said.
“This is a very welcome move and is aimed at bringing bandwidth costs to the level of our competitor countries, including China, Taiwan and Thailand. The step would certainly help the industry,” Nasscom president Kiran Karnik said.
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STPI currently sources about 700-800 Mbps bandwidth from VSNL, Reliance Communications and Bharti Airtel at market prices and then lends it to the small players, mainly in the field of BPO at competitive costs.
“It is uneconomical for the smaller companies to get the bandwidth directly from the telecom companies as their requirement is very less. Also, STPI makes the bandwidth available to the companies on a good technological platform which they cannot get if they source it directly from telcos,” an STPI official said.
The move is expected to give a relief to the exporters who have been hit hard due to rupee appreciation in the recent past.
“We welcome the government’s move to reduce the bandwidth charges from STPI, but it surely needs to do more,” Electronics and Software Export Promotion Council (ESC) executive director DK Sarin said. He, however, added that the number of data exporting companies at the STPI is not very big and the government should also take steps for such companies who are operating outside the scheme.
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The tariff reduction would, however, not affect the government’s finances as the rates have come down in the recent past following which the telecom majors have also reduced the charges. “We align ourselves to the market conditions and reduced these charges in certain specific cases,” a Bharti spokesperson said.
REASON TO CHEER
ADVERTISEMENT
Cost of bandwidth would come down to Rs 7 lakh per 2 Mbps from Rs 11-14 lakh per 2 Mbps
Reduction in bandwidth cost will enable STPI units to save Rs 30 cr from their estimated bill of Rs 60 cr per annum
Bandwidth charges constitute 5-10 % of the total data export cost for IT company, and it goes up to 15% in case of companies involved in BPO operations
Move to bring bandwidth costs to the level of competing countries, including China, Taiwan and Thailand
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