Date:14/01/2005 URL: http://www.thehindubusinessline.com/2005/01/14/stories/2005011400501700.htm

Back `Rural telecom consortiums can help get around ADC'

Vinson Kurian

Thiruvananthapuram , Jan. 13

SEGREGATING telecom service provision and network operation and entrusting rural telecom networks to a consortium of licensed service providers can help do away with the Access Deficit Charge (ADC) regime altogether.

The idea is to conceptually segregate telecom service provision and telecom network operation, says Mr P. Abraham Paul, a commentator on telecom policy. Managing telecom business and running of the networks are entirely different ball games. The business becomes more viable by limiting the number of networks in an area for better utilisation of resources and at minimal investment costs.

To make the network operation in rural areas an attractive proposition, more sops and subsidies may be allowed in licensing fee, cost of wireless spectrum and interconnect charges to the consortium. This will obviate the need for allowing in a new set of service providers or network operators exclusively for rural telecom business.

In an ideal situation, telecom service providers sell the service to the customers and manage the telecom business. The network operators set up and run the networks, selling network service to the service providers.

In order that crowding of networks in low potential areas is prevented, each company need not set up its own network operation everywhere, but should look at mutually sharing the networks. Existing fixed/mobile/CDMA networks in the circles and the pan India licensed companies must provide service as telecom service providers to the entire circle without any bias to any single area/s.

This way, customers get the choice of buying service from any licensed service provider based on the service cost and value-added services. They become free to access any network that offers quality service in their service area.

For the time being, number portability (through roaming) in fixed networks with Home Location Register (HLR) and Visiting Location Register (VLR) is possible only in the wireless domain. An HLR is a database of subscriber information used in mobile (cellular) networks. A VLR is a database used by the mobile network to temporarily hold profiles of roaming users.

However, the differentiations between wired and wireless networks are narrowing fast and, therefore, it should be possible to have a uniform plan in due course. With advancement of technology, it should even become possible to provide full number portability in fixed networks by suitable use of network switching systems with HLR and embedded VLR.