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TRAI favours a level playing field

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CIOL Bureau
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BANGALORE: India's telecommunications regulator (TRAI), on Sunday defended a proposal to seek a common license policy for fixed line, cellular and long-distance phone services, saying his focus was on China-like growth, not industry disputes.



Pradeep Baijal, chairman of the Telecom Regulatory Authority of India told reporters on the margins of a business conference that his recent paper seeking public views on unified licensing provided for safeguards to ensure fair play between firms.



"The entire world is going towards a unified policy and you (critics) are bothered about justice," he said. "I am not so much bothered about justice as I am about the consumer and growth."



Baijal said his job was that of a regulator representing consumers, while a separate industry tribunal and courts were there to address disputes involving rival firms.



One-billion-strong India, with only five telephone connections per 100 citizens, is a laggard behind the world average of 15 but is one of the fastest growing in the world.



Baijal said regulatory efforts had pushed tariffs down to 60 percent of Chinese levels from 150 percent a year ago.



India currently has separate licenses for long-distance, fixed line and cellular phone service companies but new technological options and disputes over revenue-sharing and networks have fuelled controversy in the high-growth industry.



The regulator's proposal to usher in a new licensing policy has faced questions because of a dispute involving cheaper limited-area mobility being offered by fixed-line operators that use CDMA-based wireless-in-local-loop (WLL) technology. The service is disputed by cellular operators using GSM technology.



A telecom tribunal in a split verdict on Friday ruled that fixed phone firms would be allowed to offer the limited radius mobile services in competition with the cellular firms.



"All of us must find a way of getting out of litigation and getting on with growth," Baijal said. "There is enough market for all the players and the government must play a role."



Baijal told the conference that India added 1.5 million mobile connections including both cellular and limited-mobility phones per month for the past four months.



India currently has 3.2 million limited mobility users, while cellular firms have 16 million, a figure expected to touch 100 million by 2008. There are more than a dozen cellular firms including Bharti Tele-Ventures, 16 percent owned by Singapore Telecommunications, and six limited mobility providers.



Baijal said his proposal on unified mobility carefully kept in mind the interests of competition between current licensees.



"If you see the consultation paper, there are very clear provisions about compensation. There are very clear provisions about a level playing field," Baijal said.

© Reuters

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