STD rates may fall further
February 22, 2006 17:17 IST
Last Updated: February 22, 2006 17:54 IST (Rediff)
A further drop in long distance call rates is on the anvil with the Department
of Telecom deciding
to remove a major glitch in the introduction of Carrier Access Code, which
would allow telecom
subscribers to opt for a long distance operator of their choice.
In an effort to push this, DoT has decided to permit mutually negotiated
sharing arrangement of
cost for upgradation of interconnecting networks.
This decision is expected to kick-start the so far non-starter CAC, as the
present licence
agreement provides that the network resources including the cost of
upgadation/modifying
interconnecting networks to meet the requirements of the service will be
undertaken by the
operator seeking interconnection.
All STD calls in India at Re 1/min from March 1
This was a major sore point as it was seen heavily tilted against the company
seeking
interconnection, whereas the benefit of this was to go to both sides
(terminating provider also).
The resistance of BSNL to CAC where it feared loss of customers and revenue on
the basis of
comeptition, also has delayed the process.
"Mutually negotiated sharing arrangements for cost of upgradation and modifying
networks between
services providers will be permitted," officials of DoT said.
About the CAC, the order was issued in 2002, but it did not happen since then.
The CAC is a dialer
code that allows users to access the network of a long distance service
provider of their choice
to make calls.
The regulator TRAI had also issued directions regarding the implementation of
call by call and
carrier pre-selection.
But this has so far not been enforced on private operators as BSNL itself had
not come forward on
this.
DoT was also aware that system modification in the switches of Access Providers
is required to
enable them to implement Carrier Selection for STD and ISD services in their
networks and the
set-up cost for this upgradation needs to contributed by STD/ISD operators.
Since the upgradation
cost was on the higher side, no STD/ISD operators came forward to contribute to
the access
providers.
In fact, when DoT lowered the revenue-share and entry fee of STD and ISD
players in November last
year to introduce competition, it was felt that without CAC, there is no
meaning of competition in
this segment.
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