VSNL has filed a petition before the TDSAT opposing the TRAI's decision to reduce bandwidth tariff on its (and others) IPLC charges. VSNL has claimed that the TRAI which based its decision on a study conducted by Ernst & Young, has selectively used data to show the current Indian IPLC market in poor light, and has not made an accurate assessment of the current market status. According to VSNL, all is well in the Indian bandwidth industry, where it controls close to 80% of the market.
IPLC circuits are leased from VSNL (and other providers) by ISPs, IT companies et. al. VSNL controls close to 80% of the international bandwidth market in India, and its rates are close to double the prevailing international rates. The ignominy is furthered by the fact that this is after VSNL slashed its rates by 70% in June.