MUMBAI, NOV 19: The Videsh Sanchar Nigam Ltd (VSNL) has suggested that TRAI's interconnection recommendations for basic services be adopted for revenue sharing arrangements between it and DoT/MTNL. According to TRAI's recommendation, when Rs 0.50 per pulse is to be paid for carrying domestic long-distance calls, revenue be shared between the new entrant and DoT in the ratio of 60:40. Similarly, when Rs 0.70 per pulse is to be paid for carrying international calls, revenue should be shared in a 45:55 ratio between the new entrant and DoT.VSNL has also demanded that revenue sharing for international incoming calls should be on the basis of applicable commercial tariff as the call will be delivered to the nearest locations of DoT/MTNL. In a presentation made to the TRAI, it has strongly suggested that the new arrangement will enable it to compete with service providers using unauthorised international leased lines for terminating PSTN traffic in major cities of India.
Currently, VSNL's interconnectionarrangements with DoT involves charges for connecting VSNL's international gateway switches. It also has revenue sharing arrangements with domestic operators for originating and terminating calls in India. Domestic operators will deliver the international outgoing calls to the nearest VSNL gateway. VSNL in the similar manner will deliver the India terminating call to the nearest TAX (Trunk automated exchange).
VSNL hopes that this will reduce traffic and revenue loss. According to sources in VSNL, it is in the process of expanding its network and has already established two gateways at Jalandar and Ernakulam to provide access and quality of service for all type of communications.
VSNL has informed the TRAI that it would like to commission more gateways to improve overall call clearance of each region and ultimately cut down the transmission cost of DoT. However, VSNL has made it clear that although the higher investment will provide terrestrial link to various gateways, it will increase the VSNL'stransmission cost.
INSIGHT
Will end imbroglio
The existing revenue sharing formula effective from April 1, 1998 stipulates that for a international outgoing call, VSNL shall receive Rs 10 plus weighted average settlement rate-per minute for call terminating at foreign operator from DoT. VSNL pays to DoT after deducting Rs 10 from the weighted average incoming settlement rate-per minute, received from foreign administration. It has to be noted that once VSNL enters domestic long distance telephony most of the imbroglio pertaining to interconnection would be solved.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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