Regulatory Authority of India (TRAI) has asked for a reduction in the
rates of international and domestic leased line circuits in the country,
so that they can be market driven, in line with the supply and demand.
This was stated by Pradip Baijal, Chairman, TRAI, while speaking at Indian
Merchants' Chamber's third seminar on Convergence Communications in Mumbai
should be a reduction in the prices of leased line circuits, proportional
to the demand and supply of bandwidth in the country, other wise the regulator
will have to take steps to reduce the charges,"he said..
removal of the Access Deficit Charges (ADC) would take between another
three and five years, said Baijal but the charges would be reduced further
before being phased out. He said that a second consultation paper on ADC
would be released in fortnight, followed by one on spectrum allocation
in another 10-15 days, though he did not divulge details of what they
the opening of the telecom sector, Baijal stated, the tele density had
grown 2.92 per cent last year, compared with the meagre increase by around
1.92 per cent in 1998 from 0.02 per cent in 1948. However, in rural areas
the increase had not been up to expectations, so far, though it was expected
to gain momentum due to the increased interest by FMCG majors such as
soft drinks majors Pepsi and Coca-Cola, who are "increasingly"
targeting these areas.
licensing in the telecom sector, would enable the introduction of new
technologies, which would help bring down cost to the customer, he said,
without which telecom majors would be unwilling to bring in new technologies.
"Unified License is
also good to the industry, as it would help in achieving a "full
play" of service like in the case of cable TV," he said.