The DoT (Department of Telecom) will release a detailed information memorandum (IM) this week on the upcoming 3G auctions. As reported by economic times, the IM (information memorandum) to be released is likely to contains details regarding the billing schedule, qualifications of bidders, terms and conditions, payment schedules and other technical and commercial specifications that are critical to enable bidders to plan their auction strategy.
The DoT clarified that global telecom operators who do not operate in India are welcome to participate, though they will have to acquire a Unified Access Service Licence (UASL) to be eligible to bid. This implies some uncertainty for potential foreign bidders. At present, a pan-India UASL costs Rs 1,658 crore and comes bundled with 4.4 MHz of 2G spectrum. However, recent proposals to unbundle the licence from spectrum and to change its cost are still pending and could remain unresolved at the time India conducts its 3G auctions. This change is owing to a severe 2G spectrum crunch being faced in India with over 300 applicants waiting in queue for 24 months or more to get new spectrum/licences. DoT officials believe that global operators will be willing to join this queue, but given the fact that there is a shortage, the uncertainties relating to the cost and 2G spectrum availability may prove to be a deterrent. Any proposal to change the terms and conditions of licence has to be referred to the Trai and this usually involves a detailed process, including several consultations and Open House sessions with all stakeholders.
Domestic operators Bharti, Vodafone, Reliance, Tatas and Idea are expected to be the main players in the 3G auction ring. Nordic telecom giant Telenor, which recently secured 67% equity in Unitech Wireless is reported not to opt for a pan-India 3G licence but bid for a select few 3G circles. Aircel, Loop, Swan and Datacom may also place bids in some strategic circles.
The reserve price for pan-India 3G spectrum is pegged at Rs 3,500 crore. It is believed that given the limited number of slots, the government may be able to receive a price in the range of Rs 6,000 crore plus for each of the slots giving an additional revenue of Rs 25,000 crore to the exchequer for the current fiscal. The auction of third generation spectrum or airwaves, is likely to start this November. The EGoM has recently approved placing four slots of 5 MHz each in the 2.1 GHz band for auctions in 3G. If the auction is held in December as scheduled, it is highly likely that India will see four new 3G operators before the end of 2010.
To me this seems to be last round of competition between telcos in India. What I foresee is that after aggressive bidding for 3G licences, some of the operators will make huge losses. Then the consolidation phase will follow. By 2012 some of the players will start handling the batten - not to new players but to the one running in adjacent lanes.
Showing posts with label TRAI. Show all posts
Showing posts with label TRAI. Show all posts
Mobile Number Portability (MNP) to kick in from 31st Dec in India
Mobile number portability (MNP) — a facility that allows customers to switch operators but retain their numbers — will kick in from December 31 across the metros and category A circles, such as Tamil Nadu and Karnataka, while the rest of the country will have access to the facility from March 31, 2010.
TRAI, the telecom regulator in India, also issued a slew of guidelines for MNP implementation. - As per the norms, once a user switches operator, he must stay for at least three months (90 days) with the new service provider before moving to another operator.
- Besides, a user holding a mobile connection is eligible to make a porting request only after three months of the date of activation of his number.
- The subscribers, who wish to port their numbers must submit their requests in writing to their service providers. The new operator must mandatorily carry out all checks, including identity verification, before completing the process, the regulator said, adding that the entire process must be completed within four days.
- Pre-paid users must give an undertaking of being aware that balances on both talktime and minutes will not be carried over to the new operator they are switching to. Post-paid customers must furnish proof that all outstanding dues to their current operator have been cleared, TRAI added.
- The operators must inform the customer about the exact date and time for the process. The regulator has also made it clear that while the operator is porting the number, the customer may have to face a ‘no service period’ that can be extended for up to a few hours during which they will not be able to receive and make calls. But in a bid to address these concerns, TRAI has said the new operator must provide the customer with a list of missed calls and messages sent during the ‘no service period’.
Syniverse Technologies and MNP Interconnection Teleco Solutions, the two companies chosen to implement it in India, had projected to regulator that less than 3% of the country’s expected 550 million-plus mobile users will go in for MNP by 2010. The regulator, when issuing MNP norms, however, did not specify the charges that customers will have to pay for switching their operator. Syniverse and MNP Interconnection had proposed to charge customers between Rs 75 and Rs 200 for porting an operator, but the regulator is yet to take a final call on the pricing issue.
TRAI, the telecom regulator in India, also issued a slew of guidelines for MNP implementation. - As per the norms, once a user switches operator, he must stay for at least three months (90 days) with the new service provider before moving to another operator.
- Besides, a user holding a mobile connection is eligible to make a porting request only after three months of the date of activation of his number.
- The subscribers, who wish to port their numbers must submit their requests in writing to their service providers. The new operator must mandatorily carry out all checks, including identity verification, before completing the process, the regulator said, adding that the entire process must be completed within four days.
- Pre-paid users must give an undertaking of being aware that balances on both talktime and minutes will not be carried over to the new operator they are switching to. Post-paid customers must furnish proof that all outstanding dues to their current operator have been cleared, TRAI added.
- The operators must inform the customer about the exact date and time for the process. The regulator has also made it clear that while the operator is porting the number, the customer may have to face a ‘no service period’ that can be extended for up to a few hours during which they will not be able to receive and make calls. But in a bid to address these concerns, TRAI has said the new operator must provide the customer with a list of missed calls and messages sent during the ‘no service period’.
Syniverse Technologies and MNP Interconnection Teleco Solutions, the two companies chosen to implement it in India, had projected to regulator that less than 3% of the country’s expected 550 million-plus mobile users will go in for MNP by 2010. The regulator, when issuing MNP norms, however, did not specify the charges that customers will have to pay for switching their operator. Syniverse and MNP Interconnection had proposed to charge customers between Rs 75 and Rs 200 for porting an operator, but the regulator is yet to take a final call on the pricing issue.
Rollout penalty for Indian Telcos - Delayed but not denied
The government of India has proposed a penalty of Rs 135.60 crore on private telecom operators, including Tatas, Airtel and Reliance Communication, for delays in rolling out networks. Though, the department of telecom (DoT) has lowered the total quantum of penalty from Rs 477 crore decided earlier to Rs 135.60 crore after repeated representations by the operators, giving a major benefit to all big private telecom players. Almost all private players except Vodafone-Essar face penalties.
As reported in Economic times, the penalty comes to over Rs 41 crore on Tatas, Rs 31 crore on Airtel and Rs 19.65 crore on RCOM. Among others, Aircel faces a penalty of Rs 28.85 crore, HFCL has a liquidated damages of Rs 7 crore and the two PSUs — BSNL and MTNL, along with Vodafone-Essar face no penalty.
The cases for imposition of liquidated damages were processed since 2005 and show-cause notices for imposition of liquidated damages (amounting to Rs 477.15 crore) were issued in 96 cases to 10 operators. There were representations from industry pointing out delays in statutory clearances, grant of spectrum for access, among other factors, for delayed rollouts. Thus, it was decided to revisit the subject and DoT has arrived at revised lower penalty for these operators.
As suggested in one of my earlier posts its also time to adopt Swedish model for penalizing operators for not meeting roll out obligations and are in turn hoarding spectrum. (For reading the full post click here)
As reported in Economic times, the penalty comes to over Rs 41 crore on Tatas, Rs 31 crore on Airtel and Rs 19.65 crore on RCOM. Among others, Aircel faces a penalty of Rs 28.85 crore, HFCL has a liquidated damages of Rs 7 crore and the two PSUs — BSNL and MTNL, along with Vodafone-Essar face no penalty.
The cases for imposition of liquidated damages were processed since 2005 and show-cause notices for imposition of liquidated damages (amounting to Rs 477.15 crore) were issued in 96 cases to 10 operators. There were representations from industry pointing out delays in statutory clearances, grant of spectrum for access, among other factors, for delayed rollouts. Thus, it was decided to revisit the subject and DoT has arrived at revised lower penalty for these operators.
As suggested in one of my earlier posts its also time to adopt Swedish model for penalizing operators for not meeting roll out obligations and are in turn hoarding spectrum. (For reading the full post click here)
What should be the limit on market share after M & A in Telecom space ?
TRAI's consultation paper on licensing norms review has attracted following views from major Indian Telcos :
State-owned BSNL has suggested lowering of the market share limit to 40 per cent from the current 67 per cent following the merger and acquisitions of two entities in the telecom sector to avoid monopolistic situation. "It is felt that the existing provision of 67 per cent market share will create non-competitive or monopolistic situation. It is, therefore, suggested that this limit should be brought down to about 40 per cent"
Vodafone Essar, which has recently acquired number two slot in terms of subscriber base, said "We are of the opinion that the 67 per cent limit is appropriate when applied to a narrow mobile market definition. "But regime of the current M&A Guidelines, not a single intra-circle merger between licensees has taken place to date and it cannot be said that the current guidelines have produced an environment of undue consolidation. The guidelines, therefore, remain appropriate."
CDMA player Tata Teleservices wants this cap to be at 45 per cent. "We recommend a maximum market share of 45 per cent for the merged entity," the company said. The PSU also wants fixing a maximum spectrum limit that would be held by a merged entity be. It also does not want any merger to be allowed between a CDMA and a GSM company. Vodafone Essar said the merged entity should have a spectrum limit.
State-owned BSNL has suggested lowering of the market share limit to 40 per cent from the current 67 per cent following the merger and acquisitions of two entities in the telecom sector to avoid monopolistic situation. "It is felt that the existing provision of 67 per cent market share will create non-competitive or monopolistic situation. It is, therefore, suggested that this limit should be brought down to about 40 per cent"
Vodafone Essar, which has recently acquired number two slot in terms of subscriber base, said "We are of the opinion that the 67 per cent limit is appropriate when applied to a narrow mobile market definition. "But regime of the current M&A Guidelines, not a single intra-circle merger between licensees has taken place to date and it cannot be said that the current guidelines have produced an environment of undue consolidation. The guidelines, therefore, remain appropriate."
CDMA player Tata Teleservices wants this cap to be at 45 per cent. "We recommend a maximum market share of 45 per cent for the merged entity," the company said. The PSU also wants fixing a maximum spectrum limit that would be held by a merged entity be. It also does not want any merger to be allowed between a CDMA and a GSM company. Vodafone Essar said the merged entity should have a spectrum limit.
Fight for the scarce resource - "THE SPECTRUM"
Entry of Foriegn players in offering 3G mobile services
As per reports in economic times - A committee of Department of Telecom is said to have given its clearance on entry of foreign players in offering 3G mobile services and allocation of spectrum through auction. The group is said to have so far finalised two things -- that 3G is not an extension of 2G, implying that there is price to be paid through auction for spectrum to start 3G services, and entry of foreign players. Other issues including allocation of spectrum to public sector undertakings and pricing criteria are also being worked out.
At a time when voice revenues are falling, high-end value added services through 3G hold big potential for telcos to arrest the top line fall. The report indicated that the final policy is not likely to come out before July as lots of nitty-gritties have to be worked out along the broad framework of 3G, including allocation, auction methodology, benchmark price, number of players, PSUs (BSNL and MTNL) entitlements as per their existing rights. The sources said being PSUs, BSNL and MTNL will be given preference as unless supported they would not be able to compete and offer 3G services on their own. The PSUs will have pay some price for the spectrum to remain in the allocation benchmark, they said. Entry of foreign players will bring in competition and quality which would bring down the cost and make 3G services popular.
Meanwhile Tata Teleservices is opposing entry of foreign players in offering 3G services. Tata Teleservices feels this would lead to scarcity of spectrum and hamper the growth of existing operators and has demanded a level-playing field vis-a-vis foreign players.
Mandatory network sharing for roaming
Meanwhile, The Department of Telecom (DoT) plans to make it mandatory for all operators to open their networks to roaming customers from other service providers after the introduction of third generation (3G) telecom services in India. If implemented, private cellular operators will be largest beneficiaries as they will be roam on the extensive networks of state-owned BSNL. This proposal will also enable 3G subscribers to roam on the existing 2G networks. The move has been recommended by the internal committee of DoT, which is studying telecom regulator’s Trai recommendations on the allotment and pricing of 3G spectrum. The logic behind the DoT proposal is that “besides existing GSM and CDMA players, non-telecom companies and even non-Indian companies” will bid for 3G spectrum, when it is made available. As the constraint of 3G spectrum will limit the number of players in this sector, and since it will also not be possible for these players to roll-out these services on a pan-India basis, their customers will therefore have to depend on the 2G networks of existing operators when on roaming, the DoT committee has said. “In view of the limited number of service providers being recommended for 3G services and the fact that the extensive, country wide roll-out of 3G networks will take a reasonably long time, the 3G customers will have to depend on 2G networks and services in areas where 3G services are not available, or on 3G networks of other operators, wherever available for such time. Hence roaming amongst all service providers would be required and is therefore recommended to be mandated,” the DoT’s committee report said. Currently, all private operators share their network infrastructure and allow their customers to roam on the networks of competing service providers. The DoT committee recommendation gives private operators reasons to cheer as BSNL is the only telecom operator in India which does not share its infrastructure. In fact, many private operators have also demanded that the incumbent be mandated to share its nation-wide network created largely with public funds, on reasonable and non-discriminatory terms, adding that the terms of such sharing be regulated by Trai. The regulator has also been advocating the move. The Department of Telecom committee has also endorsed most of Trai’s recommendations on the allotment of 3G spectrum. While approving of Trai’s proposal that 3G spectrum be made available in the 2.l Ghz and 800 Mhz (for CDMA), it has however said that the availability of the 450 Mhz would be difficult. With just over 40 Mhz of 3G spectrum slated to be vacated by the defence forces, the committee has recommended that the allocation of the resource be limited to just four players, through a bidding process. Additionally, it has also recommended that ‘for security reasons, one slot of 3G spectrum be reserved for BSNL and MTNL’ during its allocation, where the PSUs will have to pay the price quoted by the second highest bidder during the auction process.
Limiting the number of operators to ensure spectrum availability
At this point of time the Indian telecom space is hit by the unavailability of spectrum. The Department of Telecom is said to be now considering to limit the number of operators in each service area to maintain a minimum quality of service. The step was necessary as "spectrum is a scarce resource and to ensure that the adequate quantity of spectrum is available to the licensees to enable them to expand their services and maintain the minimum quality of service." There are 23 telecom circles in the country. Currently, there is no cap on the number of service providers in a service area. As on date, 159 licenses have been issued for providing access services in the country and generally there are 5-8 providers in each service area. Since any Indian company can apply for unified access license, this is increasing the demand for spectrum in a substantial manner. In an evolving sector like telecom to ensure that the policies keep pace with the changes, DoT is seeking TRAI's recommendations on the issue of limiting the number of Access Providers in each service area. The Department is considering to review the whole set of crucial guidelines in the terms and conditions of access providers (cellular/unified access/basic) licenses. The terms and conditions slated to be reviewed are "substantial equity holding by a company/legal person in more than one license company in the same service areas, transfer of license and merger and acquisition guidelines." Besides, other guidelines like permitting service providers to offer access services using combination of technologies (CDMA/GSM and or any other) under the same license, roll-out obligations and requirement to publish printed telephone directory will also be reviewed. TRAI's decision could also decide the fate of Reliance Communications which is aspiring to enter the GSM space in a pan India presence and has thus applied for spectrum. As per DoT norms, no single company can have more than 10 per cent stake in two different cellular operators in the same circle. The guidelines also deal with market dominance and stipulate that the total market share of the combined entity cannot exceed 67 per cent in any circle.
Rajya Sabha MP and former owner of BPL Mobile, Rajeev Chandrasekhar, has joined the ongoing battle between the government and telecom operators regarding the allotment and pricing of 3G spectrum. In a communication to Prime Minister Manmohan Singh, Mr Chandrasekhar said that that the Department of Telecommunications’ (DoT) plans to allow foreign and non-telecom players to bid for 3G spectrum through an auction process must not be held hostage by Indian telecom companies. Mr Chandrasekhar’s communication comes as Tata Teleservices and GSM operators have expressed concern over DoT plans to allow foreign players to bid for 3G spectrum and said that “the existing 2G players must have the have the first right to use 3G spectrum as and when it is made available for allotment”. Mr Chandrasekhar is not a disinterested party. He is planning to bid for 3G spectrum in some metros, and will be prevented from doing so if the government bans non-telecom Indian players from participating in the auction. He has also pointed out that there were no restrictions on fourth round of cellular licenses and the recent FM licenses, while adding that restricting bidders would depress the real value of spectrum. Tata Teleservices, in its communication to DoT had alleged that the Centre was ‘disregarding the recommendations of Trai for facilitating the progress of existing GSM and CDMA operators from 2G to 3G services’. “At a minimum, we would expect that the issue of entry of new players, especially from overseas markets to be discussed openly. The interests of existing telecom licence holders who have done so much to make India the fastest telecom market in the world must be protected and a level-playing field provided to them,” the company had said.
Amid the ongoing debate over the entry of foreign players in 3G mobile services and opposition to this idea by domestic players, officials of Tata Teleservices, Bharti Airtel and Cellular Operators Association of India on Thursday met Telecom Secretary D S Mathur.
Sunil Mittal, CMD, Bharti group told the media, "My only point is existing players should get enough spectrum. We all know there is scarcity of 2G (voice spectrum)."
Former telecom minister Dayannidhi Maran had said foreign players should be considered to offer 3G services to bring in quality and comeptition. However, domestic players have opposed this proposal.
Who has got the right on spectrum - GSM v/s CDMA operators
In the fight for the spectrum, Cellular Operators Association of India has said CDMA players should be granted GSM spectrum only after the needs of the cellular service providers (GSM) have been fully met and secured.
Leading CDMA player Reliance Communications has applied for GSM spectrum to expand its mobile services in the country.
Both policy and regulation emphasize adequate availability of spectrum for existing service providers before considering the needs of new players, the COAI said in an approach paper on allocation 2G spectrum (voice).
It further said as the government is in the process of vacating spectrum in the 1800 MHz band to meet the additional spectrum requirements of GSM licensees, it is important to arrive at an equitable approach on how this additional spectrum be allotted among various service providers.
The requirements of CDMA service providers are met through spectrum in the 800 MHz band and when they migrated to UASL from fixed/WLL(M) licenses, it was on the understanding that they would provide the service in their already allotted spectrum and no additional spectrum will be given.
All the GSM licensees who are in commercial operations will come into the category of existing licensees and their spectrum requirements must be safeguarded up to at least 2x15 MHz before any subsequent licensee is considered, it said.
With the government expected to soon take a decision on the allotment of 2G spectrum for Reliance Communication’s GSM foray, existing GSM players have approached the Department of Telecom (DoT) demanding that allocation of this resource be prioritised. GSM players have said that despite the licence being technology neutral, they should have the first right to 2G spectrum as and when it is available. Besides, a GSM player who wants to expand operations to pan-India level should be given priority over new entrant Reliance Communications, they said. Last year, RCOM, which currently offers GSM services in eight circles, had applied for GSM spectrum on a pan-India basis. The company is also learnt to have floated a mega GSM tender estimated at over $6 billion. Recently, announcing the results for the year ended March 2007, chairman Anil Ambani had said that RCOM would roll out GSM services across the country within a year of spectrum being allotted. Opposing the move, the Cellular Operators Association of India (COAI), the body representing all GSM technology-based operators, had told DoT that telecom regulator Trai, during its earlier recommendations, had said that ‘additional spectrum, if available, should be given to existing operators for cost effective service. Quoting Trai, COAI said a fair balance between the two objectives of increasing competition on one hand and improving quality, coverage and price-efficiency of service on the other, has to be maintained so that the larger objective of providing quality services at affordable prices is not jeopardised. COAI also added that if new entrants were allocated GSM spectrum, at the expense of existing operators, then this will lead to ‘a sub-optimal cost structure and quality of service, which in turn will be detrimental to the growth of teledensity’. According to the GSM body, currently, the paucity of adequate spectrum for existing licensees have resulted in serious ‘quality of service’ issues, which have been highlighted by the regulator from time to time. Trai in its study papers have repeatedly said that spectrum shortage faced by operators was affecting the service quality. “Given that both policy and regulations emphasise on adequate availability of spectrum for existing service providers before considering the needs of new players, it is submitted that in the event that any CDMA licensee seeks an allotment of GSM spectrum, he will be able to get the same only after the needs of the GSM providers have been fully met and secured,” COAI said.
RCOM, Tata Teleservices and other CDMA operators have approached telecom tribunal TDSAT, seeking refund from the government of the excess fee charged during 2003-06 due to late implementation of the revenue sharing regime in allocation of spectrum. Accepting a petition by RCOM and CDMA body Association of Unified Telecom Service Providers of India, TDSAT chairman Justice Arun Kumar issued notices to the DoT and directed it to file a reply within four weeks. In the petition, the operators requested the tribunal to direct DoT to charge them for allocation of microwaves on revenue share basis from 2002 when the Unified Access Service License regime was implemented. AUSPI and Reliance in the petition also urged that spectrum charges should be taken from the date of commercial operations of telecom companies and not from the date of allocation of microwave. During proceedings, counsel Ramji Srinivasan, appearing for the operators, contended that after UASL implementation in 2002, DoT had assured them it would take spectrum charges on revenue share basis.
As per reports in economic times - A committee of Department of Telecom is said to have given its clearance on entry of foreign players in offering 3G mobile services and allocation of spectrum through auction. The group is said to have so far finalised two things -- that 3G is not an extension of 2G, implying that there is price to be paid through auction for spectrum to start 3G services, and entry of foreign players. Other issues including allocation of spectrum to public sector undertakings and pricing criteria are also being worked out.
At a time when voice revenues are falling, high-end value added services through 3G hold big potential for telcos to arrest the top line fall. The report indicated that the final policy is not likely to come out before July as lots of nitty-gritties have to be worked out along the broad framework of 3G, including allocation, auction methodology, benchmark price, number of players, PSUs (BSNL and MTNL) entitlements as per their existing rights. The sources said being PSUs, BSNL and MTNL will be given preference as unless supported they would not be able to compete and offer 3G services on their own. The PSUs will have pay some price for the spectrum to remain in the allocation benchmark, they said. Entry of foreign players will bring in competition and quality which would bring down the cost and make 3G services popular.
Meanwhile Tata Teleservices is opposing entry of foreign players in offering 3G services. Tata Teleservices feels this would lead to scarcity of spectrum and hamper the growth of existing operators and has demanded a level-playing field vis-a-vis foreign players.
Mandatory network sharing for roaming
Meanwhile, The Department of Telecom (DoT) plans to make it mandatory for all operators to open their networks to roaming customers from other service providers after the introduction of third generation (3G) telecom services in India. If implemented, private cellular operators will be largest beneficiaries as they will be roam on the extensive networks of state-owned BSNL. This proposal will also enable 3G subscribers to roam on the existing 2G networks. The move has been recommended by the internal committee of DoT, which is studying telecom regulator’s Trai recommendations on the allotment and pricing of 3G spectrum. The logic behind the DoT proposal is that “besides existing GSM and CDMA players, non-telecom companies and even non-Indian companies” will bid for 3G spectrum, when it is made available. As the constraint of 3G spectrum will limit the number of players in this sector, and since it will also not be possible for these players to roll-out these services on a pan-India basis, their customers will therefore have to depend on the 2G networks of existing operators when on roaming, the DoT committee has said. “In view of the limited number of service providers being recommended for 3G services and the fact that the extensive, country wide roll-out of 3G networks will take a reasonably long time, the 3G customers will have to depend on 2G networks and services in areas where 3G services are not available, or on 3G networks of other operators, wherever available for such time. Hence roaming amongst all service providers would be required and is therefore recommended to be mandated,” the DoT’s committee report said. Currently, all private operators share their network infrastructure and allow their customers to roam on the networks of competing service providers. The DoT committee recommendation gives private operators reasons to cheer as BSNL is the only telecom operator in India which does not share its infrastructure. In fact, many private operators have also demanded that the incumbent be mandated to share its nation-wide network created largely with public funds, on reasonable and non-discriminatory terms, adding that the terms of such sharing be regulated by Trai. The regulator has also been advocating the move. The Department of Telecom committee has also endorsed most of Trai’s recommendations on the allotment of 3G spectrum. While approving of Trai’s proposal that 3G spectrum be made available in the 2.l Ghz and 800 Mhz (for CDMA), it has however said that the availability of the 450 Mhz would be difficult. With just over 40 Mhz of 3G spectrum slated to be vacated by the defence forces, the committee has recommended that the allocation of the resource be limited to just four players, through a bidding process. Additionally, it has also recommended that ‘for security reasons, one slot of 3G spectrum be reserved for BSNL and MTNL’ during its allocation, where the PSUs will have to pay the price quoted by the second highest bidder during the auction process.
Limiting the number of operators to ensure spectrum availability
At this point of time the Indian telecom space is hit by the unavailability of spectrum. The Department of Telecom is said to be now considering to limit the number of operators in each service area to maintain a minimum quality of service. The step was necessary as "spectrum is a scarce resource and to ensure that the adequate quantity of spectrum is available to the licensees to enable them to expand their services and maintain the minimum quality of service." There are 23 telecom circles in the country. Currently, there is no cap on the number of service providers in a service area. As on date, 159 licenses have been issued for providing access services in the country and generally there are 5-8 providers in each service area. Since any Indian company can apply for unified access license, this is increasing the demand for spectrum in a substantial manner. In an evolving sector like telecom to ensure that the policies keep pace with the changes, DoT is seeking TRAI's recommendations on the issue of limiting the number of Access Providers in each service area. The Department is considering to review the whole set of crucial guidelines in the terms and conditions of access providers (cellular/unified access/basic) licenses. The terms and conditions slated to be reviewed are "substantial equity holding by a company/legal person in more than one license company in the same service areas, transfer of license and merger and acquisition guidelines." Besides, other guidelines like permitting service providers to offer access services using combination of technologies (CDMA/GSM and or any other) under the same license, roll-out obligations and requirement to publish printed telephone directory will also be reviewed. TRAI's decision could also decide the fate of Reliance Communications which is aspiring to enter the GSM space in a pan India presence and has thus applied for spectrum. As per DoT norms, no single company can have more than 10 per cent stake in two different cellular operators in the same circle. The guidelines also deal with market dominance and stipulate that the total market share of the combined entity cannot exceed 67 per cent in any circle.
Rajya Sabha MP and former owner of BPL Mobile, Rajeev Chandrasekhar, has joined the ongoing battle between the government and telecom operators regarding the allotment and pricing of 3G spectrum. In a communication to Prime Minister Manmohan Singh, Mr Chandrasekhar said that that the Department of Telecommunications’ (DoT) plans to allow foreign and non-telecom players to bid for 3G spectrum through an auction process must not be held hostage by Indian telecom companies. Mr Chandrasekhar’s communication comes as Tata Teleservices and GSM operators have expressed concern over DoT plans to allow foreign players to bid for 3G spectrum and said that “the existing 2G players must have the have the first right to use 3G spectrum as and when it is made available for allotment”. Mr Chandrasekhar is not a disinterested party. He is planning to bid for 3G spectrum in some metros, and will be prevented from doing so if the government bans non-telecom Indian players from participating in the auction. He has also pointed out that there were no restrictions on fourth round of cellular licenses and the recent FM licenses, while adding that restricting bidders would depress the real value of spectrum. Tata Teleservices, in its communication to DoT had alleged that the Centre was ‘disregarding the recommendations of Trai for facilitating the progress of existing GSM and CDMA operators from 2G to 3G services’. “At a minimum, we would expect that the issue of entry of new players, especially from overseas markets to be discussed openly. The interests of existing telecom licence holders who have done so much to make India the fastest telecom market in the world must be protected and a level-playing field provided to them,” the company had said.
Amid the ongoing debate over the entry of foreign players in 3G mobile services and opposition to this idea by domestic players, officials of Tata Teleservices, Bharti Airtel and Cellular Operators Association of India on Thursday met Telecom Secretary D S Mathur.
Sunil Mittal, CMD, Bharti group told the media, "My only point is existing players should get enough spectrum. We all know there is scarcity of 2G (voice spectrum)."
Former telecom minister Dayannidhi Maran had said foreign players should be considered to offer 3G services to bring in quality and comeptition. However, domestic players have opposed this proposal.
Who has got the right on spectrum - GSM v/s CDMA operators
In the fight for the spectrum, Cellular Operators Association of India has said CDMA players should be granted GSM spectrum only after the needs of the cellular service providers (GSM) have been fully met and secured.
Leading CDMA player Reliance Communications has applied for GSM spectrum to expand its mobile services in the country.
Both policy and regulation emphasize adequate availability of spectrum for existing service providers before considering the needs of new players, the COAI said in an approach paper on allocation 2G spectrum (voice).
It further said as the government is in the process of vacating spectrum in the 1800 MHz band to meet the additional spectrum requirements of GSM licensees, it is important to arrive at an equitable approach on how this additional spectrum be allotted among various service providers.
The requirements of CDMA service providers are met through spectrum in the 800 MHz band and when they migrated to UASL from fixed/WLL(M) licenses, it was on the understanding that they would provide the service in their already allotted spectrum and no additional spectrum will be given.
All the GSM licensees who are in commercial operations will come into the category of existing licensees and their spectrum requirements must be safeguarded up to at least 2x15 MHz before any subsequent licensee is considered, it said.
With the government expected to soon take a decision on the allotment of 2G spectrum for Reliance Communication’s GSM foray, existing GSM players have approached the Department of Telecom (DoT) demanding that allocation of this resource be prioritised. GSM players have said that despite the licence being technology neutral, they should have the first right to 2G spectrum as and when it is available. Besides, a GSM player who wants to expand operations to pan-India level should be given priority over new entrant Reliance Communications, they said. Last year, RCOM, which currently offers GSM services in eight circles, had applied for GSM spectrum on a pan-India basis. The company is also learnt to have floated a mega GSM tender estimated at over $6 billion. Recently, announcing the results for the year ended March 2007, chairman Anil Ambani had said that RCOM would roll out GSM services across the country within a year of spectrum being allotted. Opposing the move, the Cellular Operators Association of India (COAI), the body representing all GSM technology-based operators, had told DoT that telecom regulator Trai, during its earlier recommendations, had said that ‘additional spectrum, if available, should be given to existing operators for cost effective service. Quoting Trai, COAI said a fair balance between the two objectives of increasing competition on one hand and improving quality, coverage and price-efficiency of service on the other, has to be maintained so that the larger objective of providing quality services at affordable prices is not jeopardised. COAI also added that if new entrants were allocated GSM spectrum, at the expense of existing operators, then this will lead to ‘a sub-optimal cost structure and quality of service, which in turn will be detrimental to the growth of teledensity’. According to the GSM body, currently, the paucity of adequate spectrum for existing licensees have resulted in serious ‘quality of service’ issues, which have been highlighted by the regulator from time to time. Trai in its study papers have repeatedly said that spectrum shortage faced by operators was affecting the service quality. “Given that both policy and regulations emphasise on adequate availability of spectrum for existing service providers before considering the needs of new players, it is submitted that in the event that any CDMA licensee seeks an allotment of GSM spectrum, he will be able to get the same only after the needs of the GSM providers have been fully met and secured,” COAI said.
RCOM, Tata Teleservices and other CDMA operators have approached telecom tribunal TDSAT, seeking refund from the government of the excess fee charged during 2003-06 due to late implementation of the revenue sharing regime in allocation of spectrum. Accepting a petition by RCOM and CDMA body Association of Unified Telecom Service Providers of India, TDSAT chairman Justice Arun Kumar issued notices to the DoT and directed it to file a reply within four weeks. In the petition, the operators requested the tribunal to direct DoT to charge them for allocation of microwaves on revenue share basis from 2002 when the Unified Access Service License regime was implemented. AUSPI and Reliance in the petition also urged that spectrum charges should be taken from the date of commercial operations of telecom companies and not from the date of allocation of microwave. During proceedings, counsel Ramji Srinivasan, appearing for the operators, contended that after UASL implementation in 2002, DoT had assured them it would take spectrum charges on revenue share basis.
Battle at cable landing stations
While international telecom majors such as AT&T, BT, France Telecom, Verizon, Cable & Wireless, the Asia Pacific Carriers’ Coalition and domestic players such as Bharti and Reliance Communications have endorsed telecom regulator Trai’s proposal that cable landing stations (CLS) in India be opened up, and regulations be enacted to mandate access for all players to existing CLS facilities, VSNL, part of the Tata Group, has opposed the move. It’s a confrontation between the incumbent and entrants. According to industry estimates, the mandatory sharing of cable landing stations, coupled with allowing the resale of international bandwidth in the country will help to reduce bandwidth rates by 40%. If Trai issues final recommendations as per its current proposal, and if this were to be accepted by the government, then international submarine cables coming into India and new cables being built by operators here will be access the cable landing stations (CLS) of BSNL, Bharti, VSNL and Reliance Communications. International majors such as AT&T, BT, Cable and Wireless and Verizon, Orange Business Services (France Telecom) all of which have already launched, or in the process of starting long distance services in India have also told Trai that regulating this segment is in line with international practices.
"With new ILD operators coming into the market in India, it is important that they are able to get timely and equal access to the CLS, in order to be able to efficiently use the international capacity which they either own or have leased on a long-term basis,” Cable & Wireless said. The company has also pointed out that there has already been one high-profile dispute relating to access to cable-landing stations in India, adding that the publication of fair and transparent terms for CLS access and co-location should avoid such protracted disputes in the future and ensure that all operators can compete on a level-playing field.
The dispute in question was between Reliance-owned Flag and VSNL, with the latter dragging the Tatas-owned company to the International Chamber of Commerce’s Arbitration Tribunal seeking monetary relief over VSNL’s failure to share the Mumbai landing station. On the other hand, the incumbent VSNL has told Trai that access to the essential facilities and co-location at cable landing stations “should be voluntary... and no exante regulation should be resorted to”.
"With new ILD operators coming into the market in India, it is important that they are able to get timely and equal access to the CLS, in order to be able to efficiently use the international capacity which they either own or have leased on a long-term basis,” Cable & Wireless said. The company has also pointed out that there has already been one high-profile dispute relating to access to cable-landing stations in India, adding that the publication of fair and transparent terms for CLS access and co-location should avoid such protracted disputes in the future and ensure that all operators can compete on a level-playing field.
The dispute in question was between Reliance-owned Flag and VSNL, with the latter dragging the Tatas-owned company to the International Chamber of Commerce’s Arbitration Tribunal seeking monetary relief over VSNL’s failure to share the Mumbai landing station. On the other hand, the incumbent VSNL has told Trai that access to the essential facilities and co-location at cable landing stations “should be voluntary... and no exante regulation should be resorted to”.
Tata Teleservices opposes DoT's plan to auction 3G spectrum to foriegn players
As per Economic times - "Tata Teleservices has opposed communication and IT minister Dayanidhi Maran’s plans of allowing foreign players to bid for 3G spectrum and said that this would lead to further scarcity of radio resources and hamper the growth of existing operators. The company which offers CDMA-based telecom services, has also alleged that the Department of Telecom (DoT) was ‘completely disregarding the recommendations of telecom regulator Trai for facilitating the progress of existing GSM and CDMA operators from 2G to 3G services’. The interests of existing telecom licence holders who have done so much to make India the fastest telecom market in the world must be protected and a level-playing field provided to them,” the company said. The company has pointed out that at present, there was shortage of 2G spectrum, and therefore the spectrum-efficient 3G network would primarily be used to provide voice services in the beginning. “The logical policy, therefore, has to be allow the entry of 2G companies into 3G to further develop their markets and to grow by getting more spectrum and by using their existing infrastructure, instead there is a move to cap the growth of the existing players completely disregarding the recommendations made by Trai...,” the company said."
Additionally, Tata Teleservices has also objected the proposals of the internal committee formed by DoT to study the 3G spectrum pricing and allocation recommendations of Trai. This committee has suggested that four telecom companies be given 3G spectrum in the 2.1 Mhz frequency, through a bidding process, while adding that if state-owned BSNL and MTNL did not figure among the top four in the auction, then the PSUs must be given 3G spectrum provided they match the price of the second highest bidder. Tata Teleservices has pointed out that Trai had recommended that only existing players be allowed to bid for spectrum in 2.1 Ghz, and that too for a quantum of 5 Mhz each. “Inviting external entities with blocks of 10 Mhz of spectrum, will not only drive the costs up, but will also limit the number of operators. Then existing licensees will be forced to conduct their operations in sub-optimal fashion with sporadic and minute allocations of as little as 1.25 Mhz at a time. The reasons for such unfair treatment must be divulged and such unfairness is clearly not going to be accepted by the industry,” the company added. On the proposal for a quota for BSNL and MTNL, Tata Teleservices said that such treatment, in addition to being against the recommendations of Trai, would also not offer a level-playing field between private and state-owned players. It has also added that BSNL and MTNL were no longer the sole custodians of public interest as the government itself had allowed civil servants and PSUs to embrace the services of private telecom service providers.
Additionally, Tata Teleservices has also objected the proposals of the internal committee formed by DoT to study the 3G spectrum pricing and allocation recommendations of Trai. This committee has suggested that four telecom companies be given 3G spectrum in the 2.1 Mhz frequency, through a bidding process, while adding that if state-owned BSNL and MTNL did not figure among the top four in the auction, then the PSUs must be given 3G spectrum provided they match the price of the second highest bidder. Tata Teleservices has pointed out that Trai had recommended that only existing players be allowed to bid for spectrum in 2.1 Ghz, and that too for a quantum of 5 Mhz each. “Inviting external entities with blocks of 10 Mhz of spectrum, will not only drive the costs up, but will also limit the number of operators. Then existing licensees will be forced to conduct their operations in sub-optimal fashion with sporadic and minute allocations of as little as 1.25 Mhz at a time. The reasons for such unfair treatment must be divulged and such unfairness is clearly not going to be accepted by the industry,” the company added. On the proposal for a quota for BSNL and MTNL, Tata Teleservices said that such treatment, in addition to being against the recommendations of Trai, would also not offer a level-playing field between private and state-owned players. It has also added that BSNL and MTNL were no longer the sole custodians of public interest as the government itself had allowed civil servants and PSUs to embrace the services of private telecom service providers.
Indian regulator targets non-performing ISPs
Concerned over poor track record of Internet Service Providers, Indian telecom regulator TRAI has recommended lowering of foreign direct investment on par with telecom sector at 74 per cent from the existing 100 per cent. ISPs having 100 per cent FDI equity should be given two years for reducing foreign holding to 74 per cent, it said.
In its recommendations to Department of Telecom, TRAI has also suggested major changes in financial and regulatory levies. Instead of free entry, it recommended levying an entry fee of up to Rs 20 lakh along with a uniform licence fee of six per cent of gross revenue. ISPs seeking licence at national level will have to pay Rs 20 lakh as entry fee while it will be Rs 10 lakh for state level ISPs. The minimum annual licence fee has been pegged at Rs 5,000 for district level ISP, Rs 10,000 for state level and Rs 50,000 for national level ISP.
The regulator has taken a tough stand as the objective of competition and growth of Internet have not been met. "Out of 700 licences issued within three years of opening of ISP sector to private service providers, only 389 licensees exist on Thursday. As per the performance monitoring report with TRAI, only 135 Internet service licensees are functionally active," TRAI said.
In its recommendations to Department of Telecom, TRAI has also suggested major changes in financial and regulatory levies. Instead of free entry, it recommended levying an entry fee of up to Rs 20 lakh along with a uniform licence fee of six per cent of gross revenue. ISPs seeking licence at national level will have to pay Rs 20 lakh as entry fee while it will be Rs 10 lakh for state level ISPs. The minimum annual licence fee has been pegged at Rs 5,000 for district level ISP, Rs 10,000 for state level and Rs 50,000 for national level ISP.
The regulator has taken a tough stand as the objective of competition and growth of Internet have not been met. "Out of 700 licences issued within three years of opening of ISP sector to private service providers, only 389 licensees exist on Thursday. As per the performance monitoring report with TRAI, only 135 Internet service licensees are functionally active," TRAI said.
TRAI comes out with mechanisms to ensure implementation of 3 stage redressal mechanism for Indian telcos
The Telecom Regulatory Authority of India, which last week had directed all landline, mobile and internet service providers to set up to set up a three-stage redressal mechanism and improve transparency in billing with immediate effect, will carry out surprise checks, if necessary, to ensure compliance.
Trai has directed all operators to maintain complete and accurate records of redressal of grievances by its call centres, nodal officers and appellate authorities. Trai, if necessary, will direct any of its officers or employees or through an independent agency appointed by it to inspect the records maintained by the call centres, offices of the nodal officers and the secretariat of the appellate authority.
Trai had asked all operators to three-stage redressal mechanism -
1) Call centres will be the first level of customer redressal and must address all customer grievances within a maximum period of seven days.
2) At the next level, service providers must appoint a nodal officer, whom the customer can contact if he is not satisfied with the redressal at the call centre level.
3) The third level involves a provision by which the customer can appeal to the appellate authority (within the service provider) for redressal where the authority should issue its judgement on the issue within three months.
The regulator had also directed all operators to improve the quality of their billing after its survey revealed that nearly 80% subscribers found it difficult to understand their telephone bills. Accordingly, Trai has mandated that information such as applicable tariff plan, credit limit, security deposit, methodology for calculations of various pulse rates and charges, procedures regarding payments of bills, setting up of public grievance mechanism and display of customer information box with certain information be printed in easily readable font size and be included in the telephone bills issued to consumers.
Source - Economic times
Trai has directed all operators to maintain complete and accurate records of redressal of grievances by its call centres, nodal officers and appellate authorities. Trai, if necessary, will direct any of its officers or employees or through an independent agency appointed by it to inspect the records maintained by the call centres, offices of the nodal officers and the secretariat of the appellate authority.
Trai had asked all operators to three-stage redressal mechanism -
1) Call centres will be the first level of customer redressal and must address all customer grievances within a maximum period of seven days.
2) At the next level, service providers must appoint a nodal officer, whom the customer can contact if he is not satisfied with the redressal at the call centre level.
3) The third level involves a provision by which the customer can appeal to the appellate authority (within the service provider) for redressal where the authority should issue its judgement on the issue within three months.
The regulator had also directed all operators to improve the quality of their billing after its survey revealed that nearly 80% subscribers found it difficult to understand their telephone bills. Accordingly, Trai has mandated that information such as applicable tariff plan, credit limit, security deposit, methodology for calculations of various pulse rates and charges, procedures regarding payments of bills, setting up of public grievance mechanism and display of customer information box with certain information be printed in easily readable font size and be included in the telephone bills issued to consumers.
Source - Economic times
TRAI's new directive to Indian telcos on setting up three-tier consumer grievance redressal system
The Telecom Regulatory Authority of India (Trai) has issued rules mandating all telecommunications companies - landline voice, cellular and broadband - set up a three- tier system to address consumer grievances.
The regulator pointedly specified that the rules apply to the two large government-owned phone companies as well as to all others.
Indian communications companies, in theory, are supposed to have been addressing grievances via their call centers. However, earlier this year in a series of hearings leading to the new regulations, Trai learned that Indian consumers have been frustrated and, in some cases, have been unable to even find out who to go to with their complaints.
Under the new rules, carriers have just one month to appoint so-called "nodal officers," two months to set up call centers to receive consumer complaints, and three months to appoint "appellate" authorities who will serve as the final arbiters of complaints. The rules also set strict new requirements regarding the kinds of information consumers must receive on their bills. "Recent survey on Quality of Service sponsored by the Authority revealed that about 80 percent (of) subscribers have difficulty in understanding their telephone bills," Trai explained.
In addition to demanding that operators set up the three-tier system, Trai set strict time limits regarding how quickly phone companies must respond to consumers. Telcos will have just 72 hours to respond to complaints involving fault repair, service disruption and disconnection of service. For other complaints, answers must be provided within a week. If consumers still are not happy, they can go to the "nodal officers," who get a similar three days to deal with such complaints as service disruption. The final consumer appeal is to the so-called "appellate authority," which gets three months to answer.
Reports indicate consumer groups already are objecting to the Trai plan because it is the phone companies that will set up and run the complaint system. Trai, for its part, noted in its order that the Indian law setting up the regulator does not give it the authority to deal with individual consumers' problems. It also called its new rules "soft-touch regulation focusing primarily on self-regulation by service providers for the redressal of grievances of telecom consumers."
Trai also pointed out that while its new rules don't prevent consumers from taking any complaints they have to the appropriate courts, it hopes the new complaint system "would reduce the litigations in the courts constituted under the law to adjudicate complaints of consumers."
The regulator pointedly specified that the rules apply to the two large government-owned phone companies as well as to all others.
Indian communications companies, in theory, are supposed to have been addressing grievances via their call centers. However, earlier this year in a series of hearings leading to the new regulations, Trai learned that Indian consumers have been frustrated and, in some cases, have been unable to even find out who to go to with their complaints.
Under the new rules, carriers have just one month to appoint so-called "nodal officers," two months to set up call centers to receive consumer complaints, and three months to appoint "appellate" authorities who will serve as the final arbiters of complaints. The rules also set strict new requirements regarding the kinds of information consumers must receive on their bills. "Recent survey on Quality of Service sponsored by the Authority revealed that about 80 percent (of) subscribers have difficulty in understanding their telephone bills," Trai explained.
In addition to demanding that operators set up the three-tier system, Trai set strict time limits regarding how quickly phone companies must respond to consumers. Telcos will have just 72 hours to respond to complaints involving fault repair, service disruption and disconnection of service. For other complaints, answers must be provided within a week. If consumers still are not happy, they can go to the "nodal officers," who get a similar three days to deal with such complaints as service disruption. The final consumer appeal is to the so-called "appellate authority," which gets three months to answer.
Reports indicate consumer groups already are objecting to the Trai plan because it is the phone companies that will set up and run the complaint system. Trai, for its part, noted in its order that the Indian law setting up the regulator does not give it the authority to deal with individual consumers' problems. It also called its new rules "soft-touch regulation focusing primarily on self-regulation by service providers for the redressal of grievances of telecom consumers."
Trai also pointed out that while its new rules don't prevent consumers from taking any complaints they have to the appropriate courts, it hopes the new complaint system "would reduce the litigations in the courts constituted under the law to adjudicate complaints of consumers."
DoT India has accepted TRAI's recommendation on reslae of international bandwidth & access to landing stations
The Department of Telecom, India has accepted TRAI's proposals of resale of bandwidth and access to essential facilities like landing for submarine cables at landing stations with a view to promoting competition in this segment which will bring down prices. TRAI has proposed an entry fee of Rs 1 crore and a bank guarantee of the same amount for operators to be allowed for buying bulk bandwidth from international long-distance telecom companies and selling it to end users such as banks, IT firms and BPOs. The regulator also suggested a license fee at six per cent of adjusted gross revenues, same as that of ILDOs. The Licensor has also amended the relevant clauses in ILDO licence to ensure efficient, transparent and non-discriminatory Access to Essential Facilities including landing facilities for Submarine Cables at Cable Landing Stations (CLS).
Only ILDOs such as Bharti Airtel, Reliance, BSNL and VSNL, are permitted to sell international bandwidth, also known as international private leased circuits. TRAI believes that competition in IPLC (international bandwidth) segment could be enhanced if ILD licensees entering the market have adequate access to necessary facilities at cable landing stations. The CLS are the points at which International submarine cables come onshore and terminate. To ensure this access, the interconnection regulations should provide for dominant suppliers who control or who are responsible for the operation of the cable landing station, to allow other licensees to have access to the cable landing stations and physically co-locate their own equipment. The regulation should also see that interconnection at the cable landing station to any operator's equipment in the station at any technically feasible point; and access backhaul circuits of all types in a timely fashion, under terms & conditions and rates that are cost-oriented, transparent, and non-discriminatory.
TRAI had earlier observed that the IPLC segment was lacking competition. Examining the issue of access to cable landing stations (CLS) by various service providers TRAI felt that competition in IPLC is being hampered by the absence of mandated equal access to cable landing stations. Therefore, it recommended that ILD licence agreement should be removed and the clause expanded to mandate permission to landing of submarine cables owned by licenced operators.
Only ILDOs such as Bharti Airtel, Reliance, BSNL and VSNL, are permitted to sell international bandwidth, also known as international private leased circuits. TRAI believes that competition in IPLC (international bandwidth) segment could be enhanced if ILD licensees entering the market have adequate access to necessary facilities at cable landing stations. The CLS are the points at which International submarine cables come onshore and terminate. To ensure this access, the interconnection regulations should provide for dominant suppliers who control or who are responsible for the operation of the cable landing station, to allow other licensees to have access to the cable landing stations and physically co-locate their own equipment. The regulation should also see that interconnection at the cable landing station to any operator's equipment in the station at any technically feasible point; and access backhaul circuits of all types in a timely fashion, under terms & conditions and rates that are cost-oriented, transparent, and non-discriminatory.
TRAI had earlier observed that the IPLC segment was lacking competition. Examining the issue of access to cable landing stations (CLS) by various service providers TRAI felt that competition in IPLC is being hampered by the absence of mandated equal access to cable landing stations. Therefore, it recommended that ILD licence agreement should be removed and the clause expanded to mandate permission to landing of submarine cables owned by licenced operators.
TRAI comes out with recommendations to curb unwarranted calls by telemarketers
The Telecommunications Regulatory Authority of India (TRAI) has recommended punitive measures and the setting up of a national "Do Not Call" master telephone list to curb unwarranted calls by telemarketers. In its proposal to the Department of Telecommunications (DoT), TRAI has proposed seting up the National Do Not Call (NDNC) Registry, which will be a countrywide database of telephone numbers of subscribers who have opted not to receive unsolicited commercial calls (UCC).
Once the rules are finalized, TRAI has mandated telecom service providers to set up a mechanism - call centres or online procedures - to receive requests from the subscribers who do not want to receive such calls a statement issued by TRAI said.
It has also approached DoT to authorise the National Informatics Centre (NIC) to undertake the task of designing, installing, operation and maintenance of the NDNC Registry, the expenditure of which will be borne by TRAI itself.
To make the deterrence stronger, the regulator has suggested that violators be made to pay anywhere between Rs 500 and Rs 1000 (12-24 dollars) for every call they make, with more than three such calls resulting in disconnection of phones used by telemarketers.
The clearance from the communications and IT ministry and the Reserve Bank of India will be required for implementing the plan. TRAI's measures come after the Supreme Court, acting on a public interest litigation filed with it in 2006, had banned spam calls and asked the government to form a roadmap to control and curb unsolicited calls by telemarketers.
The court had termed unsolicited calls as an invasion of privacy and had directed the government to safeguard consumer interests.
TRAI's measures are likely to put a large number of domestic business process outsourcing companies, hired by companies to sell credit cards or home loans over the telephone, out of business. Many countries, such as the US and Australia, already have similar legislation to bar telemarketers from calling mobile subscribers.
Once the rules are finalized, TRAI has mandated telecom service providers to set up a mechanism - call centres or online procedures - to receive requests from the subscribers who do not want to receive such calls a statement issued by TRAI said.
It has also approached DoT to authorise the National Informatics Centre (NIC) to undertake the task of designing, installing, operation and maintenance of the NDNC Registry, the expenditure of which will be borne by TRAI itself.
To make the deterrence stronger, the regulator has suggested that violators be made to pay anywhere between Rs 500 and Rs 1000 (12-24 dollars) for every call they make, with more than three such calls resulting in disconnection of phones used by telemarketers.
The clearance from the communications and IT ministry and the Reserve Bank of India will be required for implementing the plan. TRAI's measures come after the Supreme Court, acting on a public interest litigation filed with it in 2006, had banned spam calls and asked the government to form a roadmap to control and curb unsolicited calls by telemarketers.
The court had termed unsolicited calls as an invasion of privacy and had directed the government to safeguard consumer interests.
TRAI's measures are likely to put a large number of domestic business process outsourcing companies, hired by companies to sell credit cards or home loans over the telephone, out of business. Many countries, such as the US and Australia, already have similar legislation to bar telemarketers from calling mobile subscribers.
The CTO of an Indian telecom operator can't be a foreigner ?
As per a news item reported in economic times "The government on Thursday notified the enhancement of foreign direct investment (FDI) in telecom from 49% to 74%. All companies have been given three months time to comply with the revised norms and thereafter compliance reports will have to be submitted on a six-monthly basis. The notification follows the Union Cabinet’s approval of the 74% FDI cap in March, after over 18 months of dithering on the issue. While FDI up to 49% will continue to be on the automatic route, it would require the approval of the Foreign Investment Promotion Board (FIPB) if the limit were to cross 49%. FIPB is also empowered to note that the investment is not coming from countries of concern or unfriendly entities, the government said in a statement. As reported earlier, the Cabinet when clearing the new guidelines had incorporated a series of additional norms, especially on the controversial issue of remote access (RA), to address the concerns of security and intelligence agencies as well as the defence ministry. The provision for RA will allow network majors such as Motorola and Ericsson to monitor the networks of Indian operators from locations outside the country. The Cabinet had cleared all other outstanding issues, except RA, pertaining to 74% FDI in telecom during a meeting on December 8, 2006. The guidelines allow foreigners to hold key positions like chairman, MD, CEO and CFO of telecom companies, subject to clearance from the home ministry on an yearly basis. However, majority of directors on the board will have to be Indian citizens. Besides, the chief officer in charge of technical network operations and the chief security officer have to be resident Indian citizens. Additionally, for security reasons, domestic traffic, which is identified by the licensor, cannot not be hauled or routed to any place outside India. Service providers are also required to take adequate and timely measures to ensure that the information transacted through a network by the subscribers is secure and protected. According to the guidelines for RA, telecom companies can extend this provision only from certain approved locations with prior approval from the department of telecom and other security agencies. Operators should keep an audit trail of all RA activities for a period of six months and these must be provided on request to the DoT or any other agency authorised by the government. Besides, telecom companies must also keep mirror images of such RA activities for online monitoring and provide the same to security agencies on request, and the provision of RA cannot be used for monitoring of content. The guidelines also stipulate that under no circumstances, should RA be used for lawful interception of sensitive voice and data which are specified by the government. Additionally, it also states that RA can only be provided to telecom equipment suppliers and manufacturers and the parents and affiliates of the licensee company. For extending this facility to any other company, prior approval of the DoT is required."
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