The recent interconnect stand-off between the cellular operators and the
basic operators offering limited mobility services brought out the ugliest face
of Indian telecom scene to the fore. Cellular operators resorted to unilateral
blocking of all calls originating and terminating into limited mobile operator’s
network putting the users at a receiving end. This was compounded by MTNL
blocking all cellular networks in Delhi for about two days, thus inviting the
wrath of cellular operators and subscribers who were virtually stranded for want
of connectivity to cellular network.
It all started off when GSM operators, alarmed by the launch of Reliance
Infocomm’s CDMA mobile services, panicked to the extent that they took a
series of measures including the bizarre one of blocking Tata Teleservices’
WLL to begin with.
AirTel blocked Tata Teleservices because it wanted a revision in the
commercial agreement. The licensing agreement says that there should not be any
unilateral termination of services which causes inconvenience to subscribers.
When cellcos realized that limited mobility operators had found an ingenious way
of bypassing their network and reaching WLL subscribers using the BSNL and MTNL
networks, they got aggressive calling incumbents’ decision as violative of the
interconnect agreement.
TRAI intervened and took note of Tata Teleservices grievances and ordered
AirTel to restore interconnect in three days.
AirTel and other aggrieved cellular operators moved to TDSAT against the
decision.
Later, the Supreme Court judgement set aside the TDSAT order and referred it
back to the tribunal to take a relook at the level playing grievance of the
cellular operators. Cellular operators also got an open letter to TRAI published
in all leading national dailies. However, BSNL and MTNL, who together have about
1 million cellular subscribers, were not part of the cellular operators’
campaign.
The letter addressed to TRAI concluded that cellcos could offer more
affordable services to their subscribers if the regulator fixes the interconnect
usage charge (IUC) equitably. TRAI took strong objection to cellcos going public
and termed it as a pressure tactics to influence the regulator. It, however,
said that it would come up with the IUC. With the then communications minister
Pramod Mahajan away in South Africa on an official tour, the government refused
to be drawn in the controversy, stranding millions of subscribers who could not
connect properly for more than a week. On his return, Mahajan, urged cellcos to
take decisions of regulator and tribunal sportingly instead of taking a
combative stance by blocking the services. He went to the extent of supporting
MTNL’s act of blocking all cellular operators in Delhi, terming it as ‘tit
for tat’–something that shocked everyone.
TRAI’s role in the whole impasse also came up for a lot of criticism. The
fact that TRAI was sitting on the Telecommunications Tariff Order 2003 and IUC
regulation for a long time had made cellular operators lose their patience. It
was only after cellcos went all out against TRAI that it issued the statement
that it would come out with order by the end of January, which it did too.
However, TRAI’s Tariff Order and Interconnection Usage Charge Regulation
2003 could not satisfy both cellular operators and basic operators, apart from
fixed phone users. The highlight of the directive is that WLL operators have to
pay interconnect charges to access cellular networks, and basic services rental
and tariff will go up.
Voices of discontent have started flowing in from basic operators. Cellular
operators have not been forthcoming with the their view which is understandable.
The new interconnect regime is scheduled to be effective from 1 April 2003, but
there is a strong possibility of some last-minute changes, considering the
initial reaction from the industry. S Ramakrishnan, who took over as the
president of ABTO, said, "The new IUC regime, if implemented, would push up
costs, and the industry would be left with no option but to pass on the burden
to the customer to remain viable. Of course, each individual operator will have
to decide how to go about it."
BSNL officials have been quoted as saying that the new interconnection usage
regime would hit bottomlines of BSNL. MTNL and BSNL are reportedly filing
alternative tariff packages before TRAI so as to offset the negative impact on
the subscribers of the hike in tariff. Consumers are somewhat confused due to
the rapid developments.
With Arun Shourie in the hot seat, it is sincerely hoped that he would help
restore bring some sanity back by asking operators to behave responsibly in the
larger interest of consumers.