India Telecom

September 30, 2002
Cellular telcos want freedom to connect

Rajendra Prabhu

NEW DELHI -- The private sector cellular telcos have asked the TRAI and the government to let them connect with each other directly, and not through the PSTN as is mandatory now. This demand forms part of their response to the government allotting a special number "94" for the largest incumbent basic service provider BSNL for its countrywide cellular service.

As BSNL has 99 per cent of the 40 million wireline telephones, the rule that cellular phones call to other cellular phones should go through PSTN benefits the government carrier by giving it a revenue for every cellular call. According to private sector cellular telcos, the allotment of a separate number for the BSNL cellular service gives it a tremendous brand advantage over other players who have a common 98 address.

The DoT, TRAI and the Cellular Operators Association of India (COAI) held lengthy discussions last Friday on the issue. BSNL is all set to introduce its first tranche of cellular service from October 2. The private sector cellular telcos are accusing BSNL of making them pay for interconnect costs to the PSTN, largely owned by BSNL countrywide. However, there would be no such costs for BSNL's cellular service. That would give unfair advantage to the government owned carrier, the cellular operators allege.

BSNL is also forcing the cellular operators to set up the point of presence according to its own convenience adding up to the cellular operators’ costs, they point out. The telcos have the feeling that the TRAI is not putting its foot down when it comes to BSNL, unlike regulators in other parts of the world who impose constraints on incumbent operators to help newcomers, thereby promoting competition. OFTEL, for instance, has forced the UK incumbent BT to even share its premises with other operators for setting up common equipment.