The Hindu Business Line : TRAI extends time for telecom cos to submit separate accounts

THE Telecom Regulatory Authority of India (TRAI) has given three more months to telecom operators to separate accounts according the different services offered. The telecom regulator, in February, had directed operators to submit audited reports within six months of the accounting year.

TRAI on Monday said that since it had received representations from several service providers expressing inability to file accounting separation reports by the stipulated time, it has been decided to extend the time period to nine months.

However, this will be applicable for the current year only since this is the first year that operators will be submitting separated accounts. Next year onwards the operators would be required to submit the accounts within the six months of the financial year.

At present, most telecom operators submit revenues which include income from all the services they offer. This creates a problem for the regulator to track elements of cross subsidisation between various types of service.

For instance, the private cellular operators claim that the state-owned Bharat Sanchar Nigam Ltd, which offers fixed line telephony, cellular services and long distance services may be subsidising its mobile subscribers with below cost tariffs from revenues received from long distance and fixed line telephone.

Globally, most regulators have adopted accounting separation as a means to check such cross subsidisation. It also allows the government to get an idea of the exact financial condition of a company.

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