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Tuesday, Jan 29, 2002

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Calling carriers

THE INTERIM ORDER passed by the Telecom Regulatory Authority of India on routing all STD calls without bearing the carrier access code alternately between Bharti Telesonic and Bharat Sanchar Nigam is not only impracticable technically, but also does not maximise customer interest. Both BSNL and Bharti Telesonic, for their own different reasons, have raised objections to the TRAI order as this compounds the confusion over the use of carrier access code.

BSNL has lodged a protest with TRAI seeking the deferral of the implementation of its order on the grounds that it is technically impracticable and likely to fail the test of transparency in implementation. Even assuming such an arrangement were technically feasible, it may be patently unfair to BSNL. Bharti Telesonic, with only 10 to 12 points of presence as against the BSNL's country-wide network, will straightway derive access to 50 per cent of the long distance traffic. Bharti Telesonic has also indicated that it plans to object to the default routing of STD traffic because it defeats the underlying purpose of competition. Ultimately, the choice of the carrier must be left to the discretion of the subscriber. While there is little doubt that the use of carrier access code for long-distance calling has to be pursued with vigour, the modus operandi must be altered to make it more customer-friendly and at the same time offer consumers the right to choose. Yetchoice is best exercised when the subscriber is fully informed. As of now, the subscribers are in no such state. For it is a fair bet that not all of them know they ought to choose between two operators, and how they should do so; or whether the new entrant, Bharti, can carry their calls to any place between Kashmir and Kanyakumari. TRAI must put in place a system where the local operators are required to tell every subscriber the choice of long-distance carriers available and their respective tariffs. Even where the customer fails to exercise the choice, TRAI must ask the local operator to exercise the choice on behalf of the subscriber on terms that are most favourable to the latter. The local operator must be the trustee of the customer's interest.

An option of `carrier pre-selection' is being used effectively in advanced countries. Essentially, it means subscribers instructing their local operator to route all their long-distance calls through a specific carrier (at this point in time, Bharti or BSNL). This facility could be offered here as a measure of convenience in dialling. But TRAI should ensure that subscribers, having made their choice once are not prevented from exercising it in favour of someone else at any time. This is especially important in the current context where newer long-distance operators are likely to emerge and offer even better terms than what are available now. The national long-distance market is already sizeable, around Rs 16,000 crore, and is slated to grow to Rs 24,000 crore in three years. The advent of competition and the consequent lowering of rates may help expand the market even faster. This calls for a regulatory regime that ensures fair competition amongst the service providers so that customer interest is protected.

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