Financial Daily from THE HINDU group of publications
Monday, Jan 21, 2002
Financial Daily from THE HINDU group of publications Monday, Jan 21, 2002 |
|
|
|
|
|
Info-Tech
-
Telecommunications Pvt basic operators oppose Bharti move on STD pact G. Rambabu
NEW DELHI, Jan. 20 THE private basic service operators (BSO) have opposed the proposed interconnection agreement between cellular operators and Bharti Telesonic Ltd for mobile-to-mobile STD traffic, alleging that it would "kill'' their viability and destroy the investments already made by them. In a letter to Mr M.S. Verma, Chairman, Telecom Regulatory Authority of India, the operators have urged him to examine the interconnection agreement, which is awaiting his approval, more closely, as it appears discriminatory. "The TRAI must examine any proposal by the private NLDOs to offer a lower tariff to customers by way of an interconnection revenue share with cellular operators alone carefully. Not only does this appear discriminatory, but it will also enable the cellular operators to cross-subsidise their operations and cannibalise and bypass even inter-circle long distance traffic to the detriment of the basic operators," the letter notes. It would be appropriate to await the cost determination and the tariff rebalancing as well as the results of the consultation paper issued by TRAI on interconnection regime between access providers and NLDOs before any change was permitted in the existing scenario relating to interconnection and revenue sharing regime between various operators, the BSOs said. They made it clear, however, that they were not opposed to the grant of any benefit to subscribers. The operators would welcome if the private NLDOs were to pass on the benefits of a lower tariff directly to the subscribers. This can be controlled by means of ensuring that the bills raised by the cellular operators on their subscribers clearly set out the charges payable to the NLDO by the subscriber who should also have the ability to freely choose any NLDO through the established process, the letter noted. "Let the benefits of competition by way of reduction in long distance rates be passed on directly to the subscriber, whether basic or cellular. Let nothing be done to jeopardise this current revenue share by allowing cellular operators a greater revenue share, which would not only cause them unjust enrichment but disturb the long distance market adversely and irretrievably cause a churn that will seriously erode the very viability of the basic operators," they said. They feared that if the authority were to give its nod to the proposed interconnection agreement, it would lead to a shift of a larger number of subscribers from the basic operations to the cellular operations for the purposes of long distance calls. "It must be recognised that while a free flow of competition is necessary, the regulators functioning under the TRAI Act as well as in equity, must ensure a progressive and sustained growth of all sections of the industry which protects the interests of all the service providers, and not the preserve of any single section alone. To allow competitive price wars between the incumbent and a new NLDO without reference to any costing principles or without considering the effect that it will have on other affected service providers would destroy these sections of the industry,'' the letter added.
Send this article to Friends by E-Mail
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |
Copyright © 2002, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|