The Hindu Business Line : TRAI will intervene to cut leased line costs: Baijal

THE Telecom Regulatory Authority of India can intervene to bring down domestic and international leased circuit prices in the country, said Mr Pradip Baijal, Chairman, TRAI.

"We are in the process of intervening and will bring out an order in 10-15 days," he said.

Despite high capacities and poor utilisation, leased circuit tariffs in the country are not coming down. "Which means that market forces are not working," said Mr Baijal, on the sidelines of the Communications Convergence conference here on Tuesday.

"Whenever market forces don't work in telecom, in any area, the regulator must intervene."

Two large Indian telecom operators have said that TRAI has no legal basis to intervene, according to Mr Baijal. But TRAI has checked on the practices in other parts of the world where there are instances of the regulator intervening and it is, therefore, clear that it can intervene, he said.

TRAI will bring out a consultation paper on the second round of reduction in access deficit charge (ADC) within the next fortnight, said Mr Baijal.

ADC is to be phased out in three to five years. How it is phased out will depend on how the market moves. "We will keep reducing ADC, we are committed to that," said Mr Baijal.

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