The Hindu Business Line : STD calls: Carrier choice looks distant for users

New Delhi, June 19 Private long distance operators, including Bharti Airtel, Reliance Communication and Tata Teleservices, have joined State-owned BSNL in opposing the introduction of the carrier access codes.

Carrier selection 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 competition in the long distance segment and therefore 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 chose to use BSNL’s long distance services. Once the CAC is allowed, stand-alone long-distance call providers will be able to offer very low rates to individuals who will now be free to use their services, much like what happens in countries like the US.

Ever since the telecom regulator first thought about bringing in the carrier selection codes in 2002, only BSNL had voiced its concern against the introduction of the carrier codes on grounds of high cost of implementation. But now since the private operators also have a significant share of the long distance telephony business, they are not in favour of the scheme.

Rationale for change

Explaining the rationale for the change in its views, Bharti Airtel said, “The predominant rationale for consideration of carrier selection was to provide competition, choice and more affordable tariffs to consumers in the long distance segment. However, the environment has changed significantly since then and the Authority itself has noted that the number of long distance operators has increased from 2 to 21. Further, the STD tariffs have also been falling continuously and currently are as low as around Rs.1-1.3 per minute.”

“It is thus our view that the steep reduction in long distance call charges during the last six years has significantly reduced the benefits of lower tariffs which the carrier selection would have provided to the consumers,” Bharti added.

Reliance said that implementing the scheme would be difficult. “Carrier selection implementation is complex for pre-paid subscribers and would require significant amount of work to be carried out. The charging mechanism requires creation of huge and complex database of all tariffs offered by long distance (NLDO) on an IN platform. Whenever NLDO changes tariff, subscriber selects new carrier or tariffs, then corresponding changes will have to be made in the IN platform. This will involve huge burden on the access provider,” said Reliance in response to TRAI’s consultation paper on the issue.

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