Bharti drills legal loopholes in TRAI''s IUC consultation paper

Bharti says IUC is not being done in accordance with the directions of TDSAT and the SC, demands re-framing.

PTI | May 17, 2011



Telecom major Bharti airtel has opposed the consultation paper issued by regulator Trai to review interconnection usage charges (IUC), saying it is not being done in accordance with the directions of TDSAT and the Supreme Court and hence needs to be reframed.

"We are highly surprised to note that the consultation paper released by TRAI on April 27, 2011, has not taken into consideration the observations and directions of either the Supreme Court or the TDSAT," the company said in a letter to Trai.

Trai had sought comments on whether the time has come to abolish the termination charge, a levy paid by an operator to another service provider on whose network the call ends.

Phone companies pay one another IUC for using each other's network to complete calls. Often, IUC changes affect consumer tariffs. Currently, the operators pay 20 paise a minute as a termination charge and it contributes significantly in the revenues of players, especially old operators.

The issue of IUC is a constant tussle between new operators and incumbent players. In view of over 90 per cent of subscribers registered with old operators, they have been opposing any move to do away with termination charge while the new operators are supporting the idea, saying this would give them a level playing field.

The Supreme Court had asked the Telecom Regulatory Authority of India (Trai) to implement the decision of the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) of September 29, 2009, in the matter of IUC within a period of four months.

Referring to the TDSAT decision, airtel said the framework proposed by the tribunal mentions that the termination charge should be 'cost based' and on a 'work done principle' and not on the basis of 'Bill and Keep', wherein all costs, including operational and capital expenditure, should be included in calculation of IUC.

According to TRAI, cost-based interconnection charges have a strong economic rationale. However there is no single, simple way to measure interconnection costs.

In the Bill and Keep method, the service providers do not pay any termination charges to each other. This approach implies levying no charges on interconnecting carriers at all.

Each telecom operator 'bills' its own customers for outgoing traffic that it 'sends' to the other network, and 'keeps' all the revenue that results. .

Giving the reference of the framework resulting out of TDSAT's decision, airtel said that termination rates should not be asymmetric and there should be higher termination charges for international calls.

Asymmetric termination rates are believed to benefit new operators, who do not have a large customer base or a well-set telecom network.

Airtel demanded that in accordance with the TDSAT judgement and Supreme Court order in the IUC related matter, TRAI should withdraw all questions related to the 'Bill and Keep' approach, issues pertaining to asymmetric treatment and clearly indicate the options for cost-based methodology, which includes capex.

The telecom major also requested TRAI to modify the consultation paper. However, TRAI has not reacted to the request made by the company till date.
 

Comments

 

Other News

How the mind can help the body heal itself

Why do some people recover from illness against all odds? Can our beliefs, emotions and consciousness influence the body’s ability to heal? Drawing on over three decades of experience in medicine, research and medical innovation, internationally trained ophthalmologist and author Dr Dinesh Verma ex

1,364 anti-cancer formulations to cost less from today

The National Pharmaceutical Pricing Authority (NPPA), under the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, has capped trade margins on the Maximum Retail Price (MRP) of 137 anti-cancer drugs. This was based on the recommendations of an Expert Committee constitute

Who checks the books?

I read about the news about the Coimbatore library over coffee this morning. On the face of it, the headline was about a political ‘war’ between the DMK and TVK. But what stayed with me was something much more important than the blame game behind what had transpired. A writer walking through

Development paradox: Falling poverty miracle and an inequality problem

India’s reduction in poverty over the past decade is a development achievement of considerable significance. The World Bank’s April 2026 ‘India Development Update’ estimates that the share of Indians living below the international extreme-poverty line of $3.00 per person per day i

In Arunachal, a river we call mother

In Arunachal Pradesh, the Siang is not just a river. For many of us, especially the Adi people, it is part of our family. Our grandparents fished in it. Children learned to swim in it. Our farms drink from it. When someone says a huge dam will be built on it, we do not hear the word "project".

A new retelling of the Mahabharata delves into key moments

In a time when every decision carries consequences and questions of ambition, power, loyalty, identity and moral choice continue to shape our lives, Dr. Arun Krishnan’s new book, ‘Mahakshana’ (Penguin India) offers a strikingly relevant retelling of the Mahabharata.  

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter