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BPO, IT companies may have to pay more for 24X7 broadband

Views 0 Views    Comments 0 Comments    Share Share    Posted 22-12-2008  
23 Dec 2008 Mumbai: BPOs, IT firms and enterprise users of Internet should brace up for higher prices of bandwidth if they want capacity that is disruption-proof even in case of disasters like the latest undersea cable cuts in the Mediterranean region.

Operators are mulling increasing prices for offering round-the-clock or restorable leased line services, top industry sources told ET. Leased lines are dedicated circuits which provide permanent Internet connectivity and are heavily used by IT and IT-enabled services industry for voice and data transfer.

The simultaneous disruption of services on submarine cables SeaMeWe3, SeaMeWe4 (backed by 16 telecom companies) and Reliance Communications’ Flag in the Mediterranean region has highlighted the need for submarine cable operators to have capacity on cables on different routes. While it will provide full redundancy (back-up) in case of a disaster, it will jack up costs for operators. This is because they have to keep capacity free 24X7 on a different cable route. This cost of keeping spare capacity will be passed on to end users.

Source:
http://economictimes.indiatimes.com/Infotech/BPO_IT_companies_may_have_to_pay_mo
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