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Trai for 3-way long-distance revenue split

BS Economy Bureau

The draft norms on interconnection issued by the Telecom Regulatory Authority of India on Friday suggested a three-way split of revenue from long-distance calls among the originator, the carrier and the terminator, and implementation of carrier access codes when there are multiple operators.

This will enable users to choose their long-distance operators.

This is expected to resolve the disputes between telecom operators on the issue of interconnection. For example, the Bharti group and Bharat Sanchar Nigam Ltd have not connected to each other's network in the absence of an interconnection policy.

BSNL is also hesitant about introducing carrier codes in the absence of guidelines.

The regulator is planning to hold a meeting with operators on April 19 to discuss the draft norms which will be finalised after consultations with operators.

Trai also said the interconnection charges must be based on costs and that operators should offer portability of number. This means a user will get the same number even if he changes his residence or the operator.

"For determining usage charges for the carriage of each other's traffic, both parties will furnish each other the details of their network cost," the guidelines said. Trai has proposed that the operator which requests interconnection will bear its cost. However, the cost of network upgradation will be shared by both the seeker and the provider on an agreed formula.

The regulator has also suggested setting up a central coordination committee of all the operators involved in an interconnection agreement to deal with implementation, amendment of schedules, reconciliation of accounts and to lay down procedures.

Justifying the need for guidelines, Trai noted that efficient interconnection was a pre-requisite for sustainable competition.

"To assist operators in arriving at fair agreements, a reference interconnection agreement along with the guidelines is desirable. Major operators, particularly BSNL, are encouraged to establish their own Reference Interconnect Agreements and publish the same. This will avoid the necessity of repetitive individual negotiations."

Trai said interconnection should be provided within 90 days of request. However, the seeker should provide, 12 months in advance, information on the location, estimated traffic and other technical data to facilitate planning.

If interconnection is not provided within 12 months of placing of demand, the "provider" should pay liquidated damages at 1 per cent of the annual rent for each port per day of delay.

However, the payment of damages will not spare the operator the obligation to provide the ordered capacity.

Suggesting implementation of carrier access codes, Trai said in cases where the subscriber was normally required to dial a carrier selection code, but failed to do so, the call should be routed to the default carrier. With little awareness of carrier access codes among users, this clause will cause most calls to land in BSNL's network because it is the default carrier.

Trai has also suggested that interconnection should take place where it is possible to physically co-locate the infrastructure whereby one can pay rentals to the original owner for occupying space.

Trai has suggested that each party will send to the other a report for the past month of the amount due for all effective traffic sent or received.

The watchdog has also said that the operators should provide their subscribers with the ability to retain their respective telephone numbers when the users switch from one operator to another.

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