According to a confidential note prepared by TRAI, the existing service providers (such as VSAT service providers) should also be authorised to make available their infrastructure facilities to domestic long distance operators (DLDO). Only licensed DLDOs should be allowed to build infrastructure and offer it for voice and data communication to DLD licenses. Their existing/planned backbone infrastructures should be included for this purpose.

Only licensed DLDOs be permitted to build and manage closed user groups (CUG) and private networks involving different licensed service areas. Any entity may be allowed to build a network and offer it for voice and datacommunications, it said.

According to TRAI, the infrastructure owners should not be permitted to become service providers. Public utilities like railways, PGCIL having secure right of ways should concentrate on their core business instead of becoming a DLDO. These entities should only provide their infrastructure for DLD service and may use their telecom infrastructure only for their captive use. ``In case they still want to become a DLDO, the infrastructure owners must obtain a separate license,'' TRAI added.

TRAI has suggested that existence of re-sellers in the DLD voice market should be encouraged, as it would support development of infrastructure by the listed entities. Basic and cellular networks should be permitted to interconnect creating a facility to transmit inter circle traffic which will provide an incentive to lay additional backbone.

Considering the viability and economies of scale and scope, it will be desirable to license only one nation-wide, inter-circle, facility-based DLDOinitially. This license should be required to build a comprehensive nation-wide DLDO network with its own facilities totally independent of DoT. For the initial 3-4 years, till satisfactory growth of infrastructure is achieved and the market matures, TRAI has suggested that only facility-based competition be permitted. Competition should be allowed both in facilities and services. No non-facility based competition should be permitted in the initial years. Since non-facility-based service tantamounts to reselling, the service provider need not be separately licensed but permitted to operate as a franchise of the DLDO. Only switch-based resale may be allowed after a few years.

TRAI has said that in order to ensure adequate penetration and roll out in all parts of the country, only national level DLDOs be permitted and no regional level licenses should be granted.