Jio, Airtel, Vi, Oppose Permitting Internet Providers to Offer DLCs, Seek Forbearance

Why It Matters

If ISPs gain DLC rights, incumbent telcos could lose revenue streams and the competitive balance of India’s broadband market may shift, affecting pricing, investment and rural cross‑subsidy models.

Key Takeaways

• Jio, Airtel, Vi, BSNL reject ISP DLC permissions
• They request tariff forbearance, letting market set DLC prices
• Regulator's draft rules could let ISPs lease dark fiber
• Telcos argue uniform tariffs ignore network design complexity
• BSNL warns urban ISP competition harms rural cross‑subsidy

Pulse Analysis

The debate over dedicated leased circuits (DLCs) highlights a broader tension in India’s telecom sector between legacy operators and emerging internet service providers. DLCs are critical for enterprises that need guaranteed bandwidth, low latency, and secure connectivity for cloud and data‑center workloads. By keeping DLC pricing under tariff forbearance, incumbents argue that market dynamics will foster innovation and cost efficiency, while regulators worry that unchecked pricing could lead to price gouging for high‑value corporate customers.

TRAI’s draft 2025 rules propose allowing ISPs to lease or purchase dark‑fiber infrastructure and offer managed DLC services, effectively blurring the line between traditional telecom carriers and broadband providers. Proponents claim this will expand network reach, especially in underserved urban pockets, and accelerate the rollout of next‑generation technologies such as DWDM and SD‑WAN. Opponents, however, warn that ISPs lack the pan‑India scale and service‑level expertise required for mission‑critical MPLS‑VPN offerings, potentially degrading service quality and creating regulatory arbitrage.

For the industry, the outcome will shape investment incentives and the competitive landscape for years to come. A decision favoring ISP participation could pressure incumbents to modernize their own fiber assets and reconsider cross‑subsidy models that fund rural connectivity. Conversely, maintaining strict tariff controls and forbearance preserves the status quo, protecting incumbent revenue but possibly slowing the diffusion of high‑speed enterprise connectivity across India’s rapidly digitizing economy.