Date:27/08/2005 URL: http://www.thehindubusinessline.com/2005/08/27/stories/2005082702790900.htm

Back CDMA cos seek PM's intervention — `Market forces must determine tariffs'

Our Bureau

New Delhi , Aug 26

TELECOM operators using CDMA technology have written to the Prime Minister, Dr Manmohan Singh, seeking intervention in policy matters relating to spectrum allocation, access deficit charge, and interconnection.

The operators have also asked the Government to allow market forces to determine the telephone tariffs.

The Association of Unified Telecom Service Providers of India (AUSPI), the industry body representing CDMA operators such as Tata Teleservices and Reliance Infocomm, has said in the letter that the upcoming spectrum policy must allocate equal amounts of spectrum irrespective of the technology.

This assumes significance in the light of a report prepared a sub-committee of the Department of Telecom, which sought to give a higher quantum of spectrum to GSM operators.

On issues relating to tariffs, AUSPI said that market forces have already made telecom tariffs in India the lowest in the world; therefore, it was best to leave the existing mechanism untouched.

The association said that the telecom regulator should have the final say on tariff fixation and not the Government.

"Any policy or Government diktats on tariff would serve to jeopardise the expansion of telecom services into rural areas to the detriment of the nation as a whole," AUSPI said.

The statement assumes significance in the light of a proposal from the Communication Ministry to introduce uniform calling rates across the country.

AUSPI said that the interconnection policy was unfair and discriminatory as BSNL refuses to bear the cost of interconnection.

"Interconnection should be uniform, mandatory, and non-discriminatory and should be made available within 30 days of the request being made. We sincerely request your attention as this can make or break the industry," AUSPI said in its representation given to Dr Singh on August 23.