Financial Daily from THE HINDU group of publications
Tuesday, Mar 28, 2006
Financial Daily from THE HINDU group of publications Tuesday, Mar 28, 2006 |
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Regulatory Bodies & Rulings Info-Tech - Telecommunications TRAI exempts small players from accounting separation Our Bureau
Separation norms TRAI has decided that the Accounting Separation Regulation will be applicable to only those service providers that had minimum turnover of Rs 25 crore for the preceding financial year.
New Delhi , March 27 The TRAI has exempted small players including ISPs and very small aperture terminal (VSAT) service providers from separating their accounts. The authority had earlier issued Accounting Separation Regulations, which had directed all operators to furnish details of the revenues earned from each line of telecom business in order to check anti-competitive practice. As per today's order, only cellular operators, fixed line telephone service providers, and long-distance operators will come under the purview of the accounting separation. The move to set in place accounting separation comes after concerns were expressed by the industry that large integrated players could subsidise a particular business from the revenues earned from another line of business. For instance, private operators have been saying that accounting separation was needed to know how BSNL invested the money received as access deficit charges. The TRAI has, however, said that in the case of service providers with low turnovers - like those in public mobile radio trunking service (PMRTS), Internet, and radio paging, for which tariffs are foreborne, the account report would not be of great relevance. Some of these service providers had earlier written to the authority that the filing of accounting separation reports based on the regulation was not financially difficult for them as they were small operators providing single product services. The authority has decided that the Accounting Separation Regulation will be applicable to only those service providers that had minimum turnover of Rs 25 crore for the preceding financial year.
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