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Thomas K. Thomas

Wants to make international long distance sector more competitive

New Delhi , Nov 12

In a bid to increase competition in the international long-distance (ILD) segment, the Telecom Regulatory Authority of India (TRAI) has urged the Government to make it mandatory for operators in the country to share the infrastructure on their respective landing stations.

In a note to the Ministry of Communications, the TRAI has said that its recommendations on making the ILD segment more competitive have been submitted to the Department of Telecom (DoT) on December 16, 2005 and urgent action is required.

It has also sought fairness and transparency in the issue of charges for landing stations.

The TRAI has said that lack of access to cable landing stations is stifling the growth of the ILD segment.

Cable landing stations are the physical place where undersea cables coming into the country land and are connected to the domestic telecom infrastructure.

As of now, most cable landing stations are controlled by VSNL.

Reliance Communications and Bharti also have a cable landing station each.

A number of representations have been made by the industry on easing access to landing stations.

The TRAI had also made a recommendation to the Government to make it mandatory for all operators with landing stations to offer rights to other ILD and leased line operators.

In a letter to the Ministry of Communications, the telecom regulator has urged the Government to take a decision on the matter urgently.

"There is a need to amend the ILD licence urgently. Further progress of this important matter is dependent on the decision by the DoT. Unless the licence is amended, as brought out in the recommendations made by TRAI in December 2005, the restrictive and monopoly behaviour of a few operators would remain and competition would be a major casualty."

Charges and landing rights for undersea cables have been a bone of contention among ILD operators.

Earlier, the Reliance-promoted FLAG had alleged that VSNL was not giving adequate space on its cable station.

The matter was also taken to an international tribunal, which ruled in favour of FLAG.

VSNL, on its part, has maintained that the procedures followed by the company are fair and keeping in line with current market trends.

Related Stories:
BSNL ends tie-up with VSNL for international long distance calls — Floats global tender for setting up own network
VSNL joins issue with Reliance Comm
VSNL files writ against court order on FLAG access
FLAG Tele wins arbitration case against VSNL

More Stories on : Telecommunications | Infrastructure | Regulatory Bodies & Rulings

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