Financial Daily from THE HINDU group of publications
Thursday, Feb 23, 2006
Financial Daily from THE HINDU group of publications Thursday, Feb 23, 2006 |
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Regulatory Bodies & Rulings Info-Tech - Telecommunications Choosing STD carrier: DoT allows sharing of network upgradation cost Access providers unlikely to toe the line Thomas K. Thomas
New Delhi , Feb. 22 CONSUMERS may soon be able to choose their long distance operator by using Carrier Access Codes (CAC). The hesitation on the part of the long distance operators to invest in network upgradation to facilitate the shift to CAC has prompted the Department of Telecom now to allow the operators to share the cost of upgradation with access providers. Earlier, NLD operators were expected to bear the entire burden. "The set-up cost required for upgrading the switches needs to be contributed by national and international long distance operators. Since this cost was on higher side, NLD/ILD operators did not come forward towards payment of their contribution of costs when some access providers demanded set-up cost payments," senior DoT officials said. However, cellular and fixed line telephone operators are not willing to share the cost burden. "CAC benefits the STD service providers, so why should the access provider be asked to chip in," said a cellular operator. Carrier access code was envisaged as a measure to increase competition among long distance operators. The system gives users the freedom to choose the long-distance operator depending on the quality and tariff. At present, this choice is being made by the fixed line or cellular operator and it is thrust upon the user irrespective of the time or location. Once CAC is introduced, users may get a route-specific tariff. A call to Chennai through Bharti's long-distance network may be cheaper than on BSNL's network but a call to the hinterland of Bihar may be cheaper on BSNL's STD network than on any other private operator's. However, introducing this would increase the telephone numbers by two digits, which means the exchanges will have to be upgraded to recognise the additional digits. Though CAC has been talked about for a few years now, the cost of implementing the system has been a major bone of contention. The telecom regulator had asked private operators to speed up the implementation in November 2005. However, DoT officials said that it was unfair on the part of Telecom Regulatory Authority of India to ask only private operators to implement the technology when the largest operator BSNL was not willing to do so. The draft telecom policy, which was recently circulated, had, however, made it binding on all operators to implement CAC within a year. This proposed move may now run into rough weather with operators not willing to cough up a few hundred crores required to set up the network.
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