Trai floats paper on interconnect rules to remove arbitrariness

NEW DELHI: The telecom regulator has floated a consultaiton paper to examine standard regulations around provision of interconnection points needed to complete calls, a contentious issue which has been at the heart of an ugly dispute between new entrant Reliance Jio Infocomm and India’s largest telcos.

"New TSPs (telecom service providers) have submitted to the Authority that it requires a lot of time to enter into interconnection agreements with the existing TSPs; existing TSPs tend to impose a number of terms and conditions which are non-reciprocal and discriminatory," Telecom Regulatory Authority of India ( Trai) said in the paper.

The paper comes at a time the Trai has recommended to the telecom department to impose heavy penalties on Bharti Airtel and Vodafone India – Rs1050 crore each - and Idea Cellular – Rs950 crore, for denying Jio adequate points of interconnection (PoIs), while violated rules. Trai termed the move anti-consumer, which appeared to be aimed at stifling competition. A new player, Ringo, has also accused incumbent telcos of denying it interconnection, because of which it has been unable to launch internet telephony services.

Trai said that operators have raised several issues with regard to interconnection facility ranging from unreasonably high rates asked by existing telecom operators, billing settlement, disconnection etc.

"Through the present Consultation Paper, the Authority is undertaking a review of the existing regulatory framework for interconnection with the ultimate objective of facilitating effective and expeditious interconnection between TSPs in a consultative manner," Trai said.

“Interconnection is the lifeline of telecommunication services. The term interconnection’ refers to the commercial and technical arrangement under which telecom service providers (TSPs) connect their equipment, networks and services to enable their subscribers to have access to the subscribers, services and networks of other TSPs,” it added.

Currently, interconnect pacts are decided mutually among telecom operators and the regulator intervenes in case of complaints.

Last date for comments on the paper is November 21 while counter comments can be submitted by December 6.

In the paper, Trai said that it has also been observed that telecom operators, unilaterally, disconnect PoIs in certain circumstances resulting in blockage of services to consumers, based on their own interpretation of terms and conditions for non-payment of dues etc.
"Besides, it has come to the notice of the Authority that the existing TSPs tend to impose conditions on the type of traffic which the interconnecting TSPs can send to them," it added. For example, Ringo has alleged that Airtel,Vodafone, Idea and Aircel have said that they will provide interconnection only if the company does not provide internet telephony service.

In the paper, Trai sought to know if current regulations needed to be modified to account for change in technologies, state of the market, license, regulatory and legal changes over the years since 2002, when it was first established. It wanted to know if Trai should prescribe standard interconnect rules, if the two sides can’t agree on terms within a specific time frame, or if the regulator should prescribe broad guidelines, and leave the finer details to be worked out by the two parties.

Trai sought to know the time-frame for entering into interconnection agreement when a new TSP with a valid telecom license places a request for interconnection to an existing TSP, besides fixing milestones for releasing additional PoIs.

It also asked for views on ”whether financial disincentive should be imposed on TSPs for- 30 (a) not entering into interconnection agreement within a stipulated timeframe; (b) not providing initial POI; (c) not augmenting POI within stipulated timeframe; (d) for violation of any clause prescribed in the regulations. If yes, what should be the amount of such financial disincentives?”

Trai has also proposed if a common interconnection exchange can be set-up for effective interconnection facility which will also lead to reduction in number of ports required for it.