TRAI to decide on MTNL's plan after a consensus is reached

The Telecom Regulatory Authority of India (TRAI) indicated it would not take a decision on Mahanagar Telephone Nigam Ltd.'s

(MTNL) proposal on cellular phone service until a consensus is reached on the technology to be adopted. TRAI will also hold open house discussions on the suitability of wireless technologies such as CDMA and TDMA. This in effect means that MTNL will now have to wait till the regulator completes the "open-house" process.

To a question on the criticism of the TRAI by MTNL on taking an early decision on its entering the mobile telephony service, TRAI Chairperson Mr. Justice S.S. Sodhi responded that any decision will have to consider the long-term interests and protection of the consumers and that TRAI would not like to stand in the way of bringing new technologies. Justice Sodhi who was in Bangalore in connection with the `Open House' on the consultation paper on Introduction of competition in domestic long distance communications (DLD).

The TRAI's exercise of holding an open house is a sequel to the Government's reference of its initiative in the National Telecom Policy 1999 on opening up the DLD service to competition effective January 1. The Government had sought the TRAI's recommendations on the modalities of opening the DLD with specific reference to issue connected with the scope of service, service area, number of operators, license fee structure and selection criteria of service providers. On the current exercise of interaction in different parts of the country on DLD, Mr. Sodhi indicated that the final consultation paper based on the reactions of various sections' interests such as industry, consumers and others, would be prepared in about six to eight weeks.

The authority has already held the `Open House' in most of the cities and has to go through the last one in Hyderabad on September 29. After this, it will hold further consultations with the financial institutions, eminent economists and the Planning Commission before finalizing its recommendations on the consultation paper.