The Hindu Business Line : TRAI restarts work to bring in carrier access codes

New Delhi, Jan. 19 Telecom consumers may finally get the freedom to choose their long distance telephone operator. After a delay of more than four years, the Telecom Regulatory Authority of India is working on a paper that is aimed at introducing the Carrier Access Codes in the country.

Introduction of CAC was first mooted in 2002 but had been put on the backburner by the Government due to opposition from the operators, especially Bharat Sanchar Nigam Ltd, the largest long distance operator.

CAC is a system whereby every long distance operator is given a unique identity number. Subscribers can choose the long distance operator by prefixing the code allocated to that particular service provider. For instance, a Bharti mobile phone user making an STD call from Delhi to Mumbai can choose to route it through Reliance Infocomm or Tata Teleservices’ long-distance network as the rates offered by these companies may be more attractive than Bharti’s.

This system is expected to increase the competition in the long distance segment which in turn could result in lower tariffs. At present, the long distance operator is chosen by the access provider (cellular and fixed line telephone operators). So if you are using a Bharti Airtel mobile phone there is no way you can choose to use BSNL’s long distance services even if it is cheaper.

Once the CAC is allowed, stand-alone long-distance call providers will be able to offer very low rates to individuals who will be free to use their services, much like what happens in countries like the US.

Operator opposition

However, there is still some opposition from the operators to introduce the system. “The primary objective of the carrier access codes was to offer consumers a choice between tariffs and quality of service. But the STD market is so competitive that no one can afford to compromise on quality or on tariffs. So there is no point in operators being made to bear the cost of implementing the system,” an operator said.

It is estimated that the cost of implementing CAC would be around Rs 1,000 crore. The system could provide an incentive to new long distance operators, who are at present focussed only on providing bandwidth to the corporates, to foray into the retail telephone segment.

At least 5 new companies have recently taken long distance telephone licence. Consumer groups have also been demanding the introduction of the system along with mobile number portability. While number portability, which allows mobile subscribers to change operators without having to give up their number, is being introduced by April this year, it will be up to the Government to take a final call on the fate of CAC.

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