The Hindu Business Line : Interconnection issues may dampen new operators’ roll-out plans

High and low
New players claim that current interconnection charges are based on TRAI’s order of 2003 and costs have come down since
Existing players say they are collecting charges prescribed by the telecom regulator
COAI to forward suggestions to TRAI after the joint meeting

Thomas K. Thomas

New Delhi, Nov. 3 The roll-out plans of new mobile players could be dampened with some of the existing pan-Indian operators demanding higher rates for providing interconnection.

This includes higher termination rates (levied for ending calls from a new operator’s subscriber to an incumbent player’s network) and port charges (for accepting traffic from a new player to an existing network).

Incumbent operators such as Bharti Airtel and Vodafone are at an advantageous position because they have a large subscriber base and, therefore, it is necessary for the new players to interconnect. If the new operators do not interconnect with them then their subscribers will not be able to call users on the incumbent player’s network.

“The interconnection charges being imposed by the existing players are based on the telecom regulator’s order issued in 2003. Since then the costs have come down drastically. However, the existing players want to continue with the current charges because it benefits them,” said an executive of a new telecom company.

Prescribed rates

However, existing operators said they were collecting charges as prescribed by the telecom regulator. “New players are asking for discounts and lower rates without any basis. Even we had to pay the interconnection charges as per the demands of BSNL when we had started our operations,” said an existing private player.

Solution bid

In a bid to find a solution to the issue, the Cellular Operators Association of India (COAI) has called for a joint meeting of the new and old GSM operators this week. While Loop Telecom, Swan, Datacom and Unitech are expected push the new operator’s case, existing operators including Bharti Airtel, Vodafone, Idea Cellular and Aircel are likely to oppose any further reduction in the commercial rates.

The COAI will then forward its suggestions to the Telecommunications Regulatory Authority of India (TRAI), which has already initiated a review of the interconnection rules. While the regulator is currently examining the possibility of a reduction in only the termination charges from 30 paise to 10 paise, some of the new players said the TRAI exercise should be expanded to include other aspects of interconnection, including port charges.

More Stories on : Telecommunications | Events

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Satyam in deal with Kuwait co

Interconnection issues may dampen new operators’ roll-out plans

Cambridge Tech net rises in Q2

e-matrimony sites seen transforming into ‘lifecycle’ portals

IBS clarifies on lay-offs

Target cos not willing to sell: HTMT Global

Nasscom to host animation meet tomorrow

IT consulting market sees healthy future

Slowdown in telcos’ IT spend seen

Bharti Enterprises unveils new brand identity, strategic vision