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THERE IS A NEW twist to the ongoing controversy over the launch of `limited mobility services' by fixed line operators. In an attempt to resolve the three-year-long impasse between the warring factions — fixed line and mobile service providers — the telecom regulator has decided to generate a discussion by issuing a Consultation Paper on Unified Licensing between these two services. Citing the rapid development of wireless and wireline technologies and the drop in technology costs, the Telecom Regulatory Authority of India has claimed that there is a blurring of distinction between fixed line and mobile services, and that a unified licence for both the services is the way forward.

Ton the face of it, the regulator makes it sound as though a unified licence between fixed and mobile service is a fait accompli. But that is hardly the case. Technically, it can even be said that the regulator is jumping the gun as the matter is currently under consideration by the appellate authority for telecom. On the direction of the Supreme Court, the Telecom Disputes Settlement and Appellate Tribunal is examining the legality and the question of level playing field of limited mobility services. Its verdict can throw a spanner into the works of fixed line operators. Any verdict that chooses to impose restrictions on technology interface for limited mobility or curtails it to the short distance charging area (of say, a city or town of a 50 km radius) is likely to change the character of limited mobility services and create a permanent distinction from a full fledged cellular services. Needless to say, irrespective of the TDSAT verdict, it is unlikely that these two camps will soften their hardline posture on the terms and conditions for offering basic and mobile services. Several attempts in the past to broker peace have broken down because it has been hard to reach a compromise on differing entry fees paid by the two services, their differing service areas, roll-out obligations, differing spectrum fee and the varying technologies used.

Anyway, even the unified licence proposed by TRAI does not go far enough. `Convergence' in the true sense of the term will be one that allows a telecom player to offer the entire gamut of services ranging from mobile, fixed, domestic and international long distance, Internet and other value added services on a single licence. Consumer interest will also be best served only if a converged licence of this kind is contemplated. From the perspective of telecom players, only such a licence will help them derive significant economies of scale from a diverse range of services and optimum use of infrastructure. And at the same time, bless consumers with lower tariffs with multiple technology choices and a range of services. The unified licence, which brings only the basic and cellular services within a single basket, may only be a half-hearted solution.

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