(The Times of India via NewsEdge) India's Department of Telecommunications has moved to amend all international long distance licenses with immediate effect.
Operators have been asked to sign the amendments within two weeks, a significant move aimed at setting the stage for cable landing stations (CLS) and interconnection-related reforms.
CLS, which is linked to international bandwidth pricing, is one of the least competitive areas of India's telecom sector, in sharp contrast to its mobile, fixed line, long distance and ISP segments.
The move fundamentally alters how those who have market power vis-a-vis those who do not negotiate interconnection terms, including cost of interconnection.
Interconnection, strongly influences bandwidth pricing. Corporate enterprise users, IT, ITeS, and BPO firms can expect lower prices for international bandwidth once the government finalizes its order.
However, experts pointed to the language in the current ILD licenses being a deterrent, carrying the potential to cause undesirable litigation and delay.
ILD licenses allow 'interconnection based on mutual agreements between service providers," a contentious provision.
The amendments by telecom minister, Dayanidhi Maran, now direct such mutual agreements to be 'within the framework of orders, directions or regulations.'
The license amendments are expected to be followed by Indian telecom regulators who will debate interconnection terms and costs.
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