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TRAI seeks overhaul of long distance guidelines

17 Nov 2006
00:00
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(Economic Times via NewsEdge) The Telecom Regulatory Authority of India (TRAI) has asked information and communications minister Dayanidhi Maran to amend the current international long distance guidelines to discourage restrictive and monopolistic practices of the incumbents and provide a level playing field to new entrants.

TRAI has also brought to the minister's attention the fact that despite the authority issuing recommendations to address these issues in December 2005, the department of telecom had so far failed to implement them.

This issue assumes importance as numerous players such as AT&T, Essar Group, Hutchison Essar, Spice, Sify, and Tulip have secured ILD licenses.

The regulator said if its recommendations are accepted, it could result in a reduction in ILD tariff.

Currently, six international cables, owned by BSNL, VSNL, Reliance Communications, and Bharti carry international voice and data to India.

Pointing out that the current policy was found 'wanting," the telecom regulator said that procedures need to be put in place for mandatory infrastructure sharing.

In addition, TRAI has demanded it must be allowed to fix and regulate cost-based access charges for international bandwidth, in order to ensure that prices were 'transparent, non-discriminatory and fair."

Currently, international bandwidth, which is monopolized by the four incumbents, costs 40% to 60% more than international rates.

TRAI also said current players be mandated to share CLS to 'avoid unnecessary expenditure and delay in setting up stations of new players'.

© The Economic Times

© 2006 Dialog, a Thomson business. All rights reserved

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