Leased access prices surge in Malaysia and India

Dylan Bushell-Embling
Telecom Asia

Asia's 2-Mbps leased-line costs, Malaysia, Japan, Singapore, Australia, India, Hong KongMalaysia has the dubious distinction of topping the price charts for leased access in key areas, according to the Asia Pacific Carriers’ Coalition (APCC).

Malaysia topped the survey in Ethernet access and charges $1,900 for a 2-Mbps leased line – the most commonly deployed access bandwidth – compared with the average Hong Kong price of $212, said the survey, carried out for APCC by TRP Corporate.

Although telecom prices across the board are falling, prices in Malaysia rose 28% even after adjusting for inflation and exchange rate fluctuations.

APCC secretary Rajesh Sreenivasan said that while the report deliberately avoided speculating on the reasons for price differentials, the level of competition often played a significant role in influencing prices.

TM officials did not respond to Telecom Asia’s requests for comments on the issue.

“The APCC has always argued that the most effective way to bring down prices is to have a regulatory framework that encourages competition,” he said.

Accounting for currency factors, prices have risen in India, Malaysia, Taiwan and Thailand.

Charges in India grew by an adjusted average of around 42%, nearly double the increases in the other nations.

India was also the market with some of the greatest variation – at the 2-Mbps tier, the maximum prices are 1,150% more than the region’s average access price. Yet many common access tiers are at the low end of the price scale.In Japan, carriers pay hefty fees for asymmetric leased circuits, although its symmetric DSL prices are among the lowest in the region.

Australia typically stands in the middle of the pack, but the installation prices charged are the highest of all of the countries studied.

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