Telcos, tech firms clash over India's enterprise internet

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 have been 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.“Imposing price ceilings in the DLC market will create a subsidy from telecom providers to other businesses, including ISPs and enterprise clients,” the Cellular Operators Association of India (COAI), which represents private telecom operators, told Trai on 2 March. “This violates the core principle of a free market, where prices are determined through direct negotiation between business entities.”Telcos argue that there is no evidence of market failure, denial of access, or consumer harm in the segment that would justify regulatory intervention.For tech companies like Google, Amazon, Meta, Zoom, and internet service providers represented by Broadband India Forum (BIF), the current system lacks pricing transparency, unfairly disadvantages smaller providers, and