The Hindu Business Line : Select telecom schemes `discriminatory': TRAI

THE Telecom Regulatory Authority of India (TRAI) has noted that the closed user group (CUG) and virtual private network (VPN) schemes being offered by various operators are discriminatory in nature.

"It has come to the notice of the authority that the tariff under some tariff schemes in the nomenclature of CUG and VPN has in-built features to provide free/concessional calls to CUG/VPN members when they make calls within the group. This feature appears to infringe upon the principle of non-discrimination, which has repeatedly been enunciated by the authority. There is also a view that tariff concessions applicable to CUG/VPN subscribers of one network cannot be extended to subscribers of another network by virtue of the definition of CUG/VPN. The concern of the authority is whether such tariff plans would amount to dilution of the principle of non-discrimination emphasised by the authority," it has stated in its consultation paper on the issue.

It has noted that the development of technologies, reduction in the cost of providing telecom services and escalation of competition in the market have all resulted in telecom service providers offering various innovative tariff schemes in the market. Considering the fact that services such as CUG/VPN have been found to satisfy legitimate interests of various organisations in the past, it was felt necessary to issue a consultation paper to elicit the views of various stakeholders, TRAI has said.

The issues that will be considered by the authority are whether differential tariff for calls within the network could continue to be treated as discriminatory. Further, whether CUG and VPN tariff schemes could be disallowed as it involves differential call charges and thus, amounts to discrimination. The authority may also prescribe certain terms and conditions to ensure that these schemes are not misused.

Written comments to the consultation paper have been invited latest by March 5, 2004.

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