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Hike in BSNL interconnect charges -- Basic operators to approach TRAI

G. Rambabu

NEW DELHI, May 6

PRIVATE sector basic service operators have decided to approach the Telecom Regulatory Authority of India (TRAI) against the decision of the State-run Bharat Sanchar Nigam Ltd (BSNL) to hike interconnect access charges for local, STD and ISD calls, start ing June 1, 2001.

According to sources, the private operators will be meeting BSNL officials on Tuesday to try and stall the proposed hike in access rates. Failing which, TRAI will be asked to intervene.

As per BSNL's proposal, the access charges payable by the operators for STD calls would be up by 75 per cent to Re 0.84 per unit measured call from Re 0.48. And for ISD calls, the access charges are proposed to be increased by 45 per cent, to Re 0.96 per unit measured call as per standard pulse rate, from Re 0.66.

Even in the case of local calls of 3 minutes duration, the proceeds of which are at present retained by the private operators, BSNL proposes to start levying a charge of Re 0.60 per call, to be paid for net difference of total calls.

The private operators have argued that the present charges were decided by TRAI in May 1999, only as an interim arrangement.

It is yet to finalise cost-based tariffs and access charges. What is more, the capital cost and operating cost of unbundled network service separately for local calls, STD calls and ISD calls was still not available, they said.

To top it, the expert committee of TRAI is looking into the various aspects of interconnection arrangements and charges. Hence, the changes proposed by BSNL were arbitrary and would drive them out of business, the private operators have said.

BSNL, however, seems keen on going ahead with the proposed hikes.

In its letter to the private operators, it has noted that the access charges for STD and ISD calls are much below the cost incurred by it for carriage of these calls over its long distance network and their termination at the distant end.

Similarly, for the local calls also, the cost incurred by BSNL for their carriage in its network is quite high.

The present arrangement for payment of access charges for STD, ISD and local calls was offered by DoT at the time of bidding for licence as a promotional measure with a view to promote the entry of private sector into basic telecom services.

BSNL notes that it has been incurring huge losses on this account and cannot continue levying the present rates which are highly subsidised, and needs to be adequately compensated.

With neither side willing to accommodate the other, it seems certain that the final say will have to be to be that of TRAI.