RESTRICTED
WORLD TRADE S/NGBT/W/3/Add.34
26October 1995
ORGANIZATION(95-3294)
Original: English Negotiating Group onBasic Telecommunications
COMMUNICATION FROM INDIA
Response toQuestionnaire onBasic Telecommunications
Thefollowing communication iscirculated attherequest ofIndiatoMembers oftheNegotiating
Group onBasic Telecommunications.
_______________
PartI
Definition andMarket Structure
Definition:
1. What areconsidered tobebasic telecommunications under yourregulatory regime? Howare
they defined? How does your regulatory regime define thatwhich isnotconsidered basic
telecommunications?
IntheIndian Government 'sLaws andRegulations relating totelecommunications, there isno
definition ofBasic Telecommunications. However, forthepurposes ofreply tothisquestionnaire,
theword "basic telecommunication services" isassumed tocover thefollowing services:-
a. Voice telephone services
b. Packet-switched datatransmission services
c. Circuit switched datatransmission services
d. Telex services
e. Telegraph services
f. Facsimile services
g. Private leased circuit services,
Note: Provision of64KBPS V-SAT based telecom networks forclosed usergroups isconsidered
asavalue added service. Provision ofradio-based mobile voice telephone services isconsidered
asaValue Added Service.
2. Does yourregulatory regime distinguish between networks (facilities) andservices indefining
basic telecommunications? Ifso,howisthisdistinction made?
IntheIndian Government 'slawsandregulations relating totelecommunications, distinction
between services andnetworks isnotspeltout.S/NGBT/W/3/Add.34
Page2
3. Arethereanynetworks orservices which would beconsidered tobebasictelecommunications
within thescope oftheGATS definition which would notbesoconsidered byyournational definition?
Ifso,whatarethey?
Seeanswer 1.
Market structure
4. Listanybasic telecommunications sub-sectors orcategories which arereserved tosupply by
monopoly orexclusive supplier(s).
AspertheIndian Telegraph Act,within India, Government ofIndiahastheexclusive privilege
forprovidingtelecommunicationservices.However,theGovernmentmayauthorisealicenseetoprovide
these services under specified terms andconditions.
5. Doesyourregime designate oneoralimited number ofmonopoly/exclusive suppliers tosupply
anybasic telecommunications nationally, onageographical basis, orforparticular market segments?
Howisit(orthey)constituted(e.g.governmentministryoragency,whollygovernment-ownedcorporate
entity, company party owned bythegovernment, privately owned?
Government ofIndia through theDepartment ofTelecommunications (DoT) administers the
telecom services throughout thecountry. Forthispurpose thecountry isdivided into20
telecommunication circles and4metro districts. Atpresent Basic Telecommunication Services are
provided directly byDoTinalltelecommunication circles andmetro districts except in2metro districts
(Bombay andDelhi) where alicensee ofthegovernment namely Mahanagar Telephone Nigam Ltd.,
aGovernment company, provides thesame. International Telecom. Services areprovided byM/s.
VideshSancharNigamLtd.[VSNL],aGovernmentCompany.TheNationalTelecomPolicy,announced
bytheGovernment in1994, provides forparticipation ofprivate sector inproviding telecommunication
services. Inpursuance ofthisNational Telecom Policy, theGovernment hasinvited bidsfromprivate
companies through opentender forproviding telephone services.
6. Isforeign equity participation orownership ofmonopoly orexclusive suppliers permitted?
Ifso,whatisthemaximum percentage share allowed andwhatisthecurrent levelofidentifiable foreign
participation?
Theguidelines issued bytheGovernment fortheentry ofprivate sector intobasic telecom
services permits foreign equity upto49percentonlyinIndian companies forproviding voice telephone
service invarious telecommunication circles/metro districts.
7. Ifyourregime isgenerally characterized asnotpermitting competition, please indicate:
(a) ifcertain activities orcategories ofwhatcould beconsidered basictelecommunications
arenotreserved tothemonopoly, e.g.facsimile, telex, datatransmission, mobile,
satellite services;
(b) arethereanyothermeans through which foreign suppliers ofbasictelecommunications
areormayparticipate inthesupply ofbasic telecommunications, e.g.sub-contract
orbuild-operate-transfer arrangements withthemonopoly suppliers.
Notapplicable.S/NGBT/W/3/Add.34
Page3
8. Please listandbriefly describe anyintergovernmental agreements, bilateral orotherwise, that
yourgovernment hasentered intorelating tothesupply ofbasic telecommunications networks and
services.
Some oftheintergovernmental agreements entered intobyGovernment ofIndia areasunder:
1. INTELSAT Agreement.
2. INMARSAT Convention &operating agreement onINMARSAT.
3. Commonwealth Telecommunications organisation Financial Agreement, 1983.
4. ITUInternational Telecommunications Union.
5. ITURadio Regulations.
6. ITUInternational Regulations.
There arefourbilateral agreements oneeachwithPakistan, Nepal, Bangladesh andBhutan
onsome telecommunication services.
PART II
Competition
Forthesub-sector andcategory headings insections AandB,thefivequestions listed below
should beaddressed foreachsubsector andcategory thatyoudescribe. Recognizing thatsubsectors
andCategories mayoverlap, please keepinmind thatitistheintroduction ofcompetition andtheway
ithasbeenintroduced thatshould determine howtoselect which subsectors andcategories covered
inyourresponses.
(i) Overview: What arethemaingovernment policies andregulations regarding thecompetition
inthissubsector orcategory? Canforeign suppliers participate inthesupply ofbasic
telecommunications inthissubsector orcategory?
(ii) Modes ofsupply: Inyourview, howdotheGATS modes ofsupply (cross border, consumption
abroad, commercial presence, andpresence ofnatural persons) apply tothissubsector or
category? What kinds ofrequirements conditions, orlimitations areapplied inthissubsector
orcategory which relate toeachmode ofsupply?
Note: Responses onmodes ofsupply should notnecessarily belimited tomeasures which might relate
tomarket access ornational treatment asdefined bytheGATs. Information provided may
helpadvancediscussionsonhowthemodesofsupply,particularlycrossborderandconsumption
abroad, relate tobasic telecommunications.
(iii) Market access: What kindoflimitations onmarket access areapplied? (i.e.Aretheyany
quantitative limitations on,oreconomic needs testsapplied, to,thenumber ofsuppliers? Are
thereanylimits onthetotalvalue oftransactions, totalnumber ofoperators, quantity ofoutput,
orthetotalnumber ofpersons thatmaysupply basic telecommunications orbeemployed by
asupplier? Arethere anyrestrictions orrequirements regarding typeoflegalentity thatmay
supply basic telecommunications? Arethere anylimits onforeign ownership orequity
participation?)S/NGBT/W/3/Add.34
Page4
(iv) National treatment: What kindoflimitations onnational treatment areinplace extending to
foreign suppliers treatment lessfavourable thanthatfordomestic suppliers? (E.g. are
preferencesgiventodomesticsuppliersorrestrictionsorobligationsimposedonforeignsuppliers
withrespect toanyprocedures orregulations, including licensing? Arethere anylimitations
onthenationality orresidency ofmanagers, directors, orboard members? Arethere any
restrictions onforeign ownership oflandorfacilities? )
(v) Licensing: Iflicensing isrequired inthissub-sector orcategory, briefly describe theprocedures
concerned andexplain themainrequirements, criteria andfeesapplied. whataresome ofthe
principal terms andconditions onlicensees, oncealicence isobtained?
Note: Licensing isintended tobeunderstood inabroad sense, include processes suchasapproval,
authorisation, registration orcertification, asapplicable.
Sub-Sectors
Foranysub-sector inwhich competition ispermitted inyourregime (i.e.which arenotreserved
tomonopoly orexclusive suppliers) answer questions (i)through (v)above, asapplicable. Thefollowing
listofsub-sectors isconsidered illustrative andshould besupplemented withanyother sub-sectors
orsubactivities which youmaywishtodescribe.
a. Voice telephone services
b. Packet-switched datatransmission services
c. Circuit switched datatransmission services
d. Telex services
e. Telegraph services
f. Facsimile services
g. Private leased circuit services, and
o. Other
Thefollowing aresome additional examples ofbasictelecommunications networks orservices
notexplicitly listed in(a)-(g)and(o),above, forwhich responses mayberelevant; voice/nonvoice
services using domestic/international private leased circuits ;cable-TV-related voice telephone networks
andservices;domestic/internationalsatelliteservicesandsatellitelinks/capacity;analogue/digitalcellular
mobile networks andservices; PCSnetworks andservices; paging services; mobile dataservices; fixed
line/wireless local access; loca/long distance linelinks; local/long distance switching; international
switching andother international gateway facilities. Whereas some ofthese might beconsidered to
fallunder (o),above, some might alsobeconsidered tobeactivities falling within sub-sectors (a)-(g).
A. Sub-sectors
(a) Voice Telephone Service
(i) Overview: Sofar,therehasbeennocompetition inthisservice andservice issupplied
solelybytheGovernmentofIndiathroughDoT/MTNL.Inmay,1994,theGovernment
ofIndia announced anewNational Telecom Policy which allows participation by
companies registered inIndia intheexpansion oftelecommunication network for
providing telephone service. These companies willberequired tomaintain abalance
intheircoverage between urban andrural areas. Their conditions ofoperation will
include agreed tariff andrevenue sharing arrangements. Subsequently in1994, the
Government ofIndia issued further guidelines fortheentry ofprivate sector intothe
fieldofproviding telephone service. Inpursuance oftheNational Telecom PolicyS/NGBT/W/3/Add.34
Page5
&theguidelinesissued,Ministryofcommunicationsinvitedtenderssettingdownlicence
conditions within theframework oftheNational Telecom Policy andtheguidelines
thereof. Forthepurpose ofthistender, thecountry isdivided into20territorial Circles
andDelhi Metro district. Ineachofthetelecommunication circles forthefirstten
years, competition willbeprovided byoneprivate operator totheexisting supplier,
namely, Deptt. ofTelecommunication asperdetails given inthetender document.
Thecompetition forvoice telephone service willbewithin thetelecommunication
circle/metro district. Intercircle/metro district longdistance media willbeprovided
solely byDoTinitially foraperiod offiveyears afterwhich thepolicy willbereviewed.
International telecommunication service willcontinue tobeprovided bytheexisting
monopoly supplier i.e.Videsh Sanchar Nigam Limited (VSNL).
(ii) Mode ofsupply: Cross border mode ofsupply isnotrelevant tolocalexchange service
ordomesticlongdistanceservicei.e.intracircle/intrametrodistrictorintercircle/metro
district. Itisapplicable onlytointernational longdistance service.
Consumption abroad: doesnotappear tobearelevant mode ofsupply forbasic
telecommunication services.
(iii) Market access:
Only Indian Companies areallowed toprovide telephone service. Foreign equity in
suchcompanies cannot bemore than49percent. Theservice hastobeprovided as
perlicence conditions, detailed inthetender document.
(iv) National Treatment
Foreign equity participation inanyregistered Indian company canbeupto49percent.
There isnoother telecommunication-specific restriction. Horizontal restrictions as
given inIndia'sschedule ofspecific commitments shallhowever beapplicable.
(v) Licensing
Aspertheprovisions oftheIndian Telegraph Act,theservice canbeprovided only
aftergetting licence from theDirector General, Telecommunications whoisvested
bytheGovernment ofIndia withthepower toissuelicence. Thelicence tosuccessful
bidder willbegiven asperdetails given inthetender document.
(b) Packet switched datatransmission services
Thisservice continues tobesupplied onlybyDepartment ofTelecom, Government ofIndia.
(c) Circuit switched datatransmission service
Licensed voice telephone service providers arepermitted toprovide switched dataservice in
realtimeovertheirvoice telephone network. Seeanswer toA(a).
(d) Telex services -seeanswer (b)
(e) Telegraph services -seeanswer (b)S/NGBT/W/3/Add.34
Page6
(f) Facsimile services
Licensed voice telephone service providers arepermitted toprovide Facsimile services inreal
timeovertheirvoice telephone network. Seeanswer toA(a).
(g) Private leased circuit services
Licensed voice telephone service providers arepermitted toprovide pointtopointleased circuits
within theCircle. Seeanswer toA(a).
B. Categories
Foreachofthecategories thatfollow inwhich competition ispermitted answer questions (i)
through (v)above asapplicable, aswellasthespecific questions listed under agiven category.
Local/long distance/international
Foranswer toquestion (i)through (v)seeanswer given inA(a).
1. How arelocalanddomestic longdistance distinguished ordefined?
Theareawithin 5Kmradial distance fromtelephone exchange orsuchareas which Director
General,Telecom.hasdeclared/declarestobeservedbyanexchangesystemforthepurposeoftelephone
connection isthelocalareawhich generally butnotnecessarily coincides withtheboundary ofacity
ortown. Thecallsmade within thelocalareaaretreated aslocalcalls. Calls between different local
areas constitute domestic longdistance calls.
2. Arethere anyregulatory orother distinctions between domestic (local andlongdistance) and
international networks andservices andbetween thesuppliers ofbasic telecommunications inthese
market segments? Ifso,whatarethey?
Local voice telephone service including intratelecom circle/metro district (i.e.service within
thetelecom Circle/metro district) willbeprovided initially byonecompetitor private company apart
fromDepartment ofTelecommunications (theexisting monopoly supplier oftheservice). Intertelecom
circle longdistance network andservices willbeprovided initially onlybyDepartment ofTelecom
andpolicy inthisregard willbereviewed afteraperiod offiveyears. International longdistance
network andservices willbeprovided onlybyexisting monopoly supplier i.e.VSNL.
Wire-based
Aspertender conditions, private operator willbepermitted toprovide fibre-based localloops
except forthelast500meters forwhich hemaytakerecourse tocopper cables.
Radio-based
Theprivate operator willalsobepermitted toprovide wireless localloops.
Note: Please address alltypes ofrelevant radio-based telecommunications including satellite links,
accesstosatellitecapacity,VSAT,mobilecellularcommunications,paging,mobiledataservices
andother radio communication systems. Recognizing thatwirebased or"fixed" networks
canradio based inpart, responses under thiscategory should relate toanyrequirements
specifically related toradio-based elements ofnetworks orservices.S/NGBT/W/3/Add.34
Page7
Resale-basis
Foranswer toquestions (i)through (v),seeanswer given inA(a).
1. How arelocalanddomestic longdistance distinguished ordefined?
Theareawithin 5Kmradial distance fromtelephone exchange orsuchareas which Director
General,Telecom.hasdeclared/declarestobeservedbyanexchangesystemforthepurposeoftelephone
connection isthelocalareawhich generally butnotnecessarily coincides withtheboundary ofacity
ortown. Thecallsmade within thelocalareaaretreated aslocalcalls. Calls between different local
areas constitute domestic longdistance calls.
2. Arethere anyregulatory orother distinctions between domestic (local andlongdistance) and
international networks andservices andbetween thesuppliers ofbasic telecommunications inthese
market segments? Ifso,whatarethey?
Local voice telephone service including intratelecom circle/metro district (i.e.service within
thetelecom circle/metro district) willbeprovided initially byonecompetitor private company apart
fromDepartment ofTelecommunications (theexisting monopoly supplier oftheservice). Intertelecom
circle longdistance network andservices willbeprovided initially onlybyDepartment ofTelecom
andpolicy inthisregard willbereviewed afteraperiod offiveyears. International longdistance
network andservices willbeprovided onlybyexisting monopoly supplier i.e.VSNL.
Wire-based
Aspertender conditions, private operator willbepermitted toprovide fibre-based localloops
except forthelast500meters forwhich hemaytakerecourse tocopper cables.
Radio-based
Theprivate operator willalsobepermitted toprovide wireless localloops.
Note: Please address alltypes ofrelevant radio-based telecommunications including satellite links,
accesstosatellitecapacity,VSAT,mobilecellularcommunications,paging,mobiledataservices
andother radio communication systems. Recognizing thatwirebased or"fixed" networks
canberadio based inpart,responses under thiscategory should relate toanyrequirements
specifically related toradio-based elements ofnetworks orservices.
Resale-basis
Foranswer toquestions (i)through (v),seeanswer given inA.
3. Doyourregulations permit international resale ofprivate leased circuit capacity ifconnected
tothepublic network. Ifso,atoneend? Atbothends? Under whatconditions? Isresale ofswitched
voice capacity permitted?
Resale ofinternational leased circuits isnotgenerally permitted.S/NGBT/W/3/Add.34
Page8
4. Isresale ofprivate leased circuit excess capacity permitted? Ifso,under what conditions?
Maybasic telecommunications beresold tomake them available tothird parties? Forwhich basic
telecommunications isthispermitted?
Resale ofvoice telephone service ispermitted toalimited extent asperthefollowing:
(a) Licenced franchisees provide public calloffice service forwhich theyearnacommission
from theDoT.
(b) Licenced franchisees provide direct in-dialling EPABX service inamulti-storeyed
building forwhich theyearnacommission from theDoT.
Facilities-based
Foranswer to(i)through (v),seereply atA.
5. Maybasic telecommunications suppliers (foreign anddomestic) construct andoperate their
ownnetworks orinvest inconsortia toconstruct andoperate suchfacilities? Ifnot,whatorganisations
arepermitted toconstruct andoperate basic telecommunications network infrastructures?
Indian companies whowillbeselected onthebasis oftender bids(tender hasalready been
floated) willbeallowed toconstruct andoperate theirownvoice telephone network within theCircle.
Intercircle/metro district transmission facilities willcontinue tobesupplied byDepartment ofTelecom.
Thepolicy willbereviewed afterfiveyears. International voice telephone service including
transmission facilities willcontinue tobesupplied byexisting supplier i.e.VSNL.
Public/non-public supply
(i)to(v)-Notapplicable.
6. Does yourregime make distinctions between suppliers ofpublic switched andnon-public basic
telecommunications? Ifso,how?
There isnoconcept ofnon-public basic telecommunications.
7. What basic telecommunications doyourregulations require explicitly orineffect, tobemade
available tothepublic generally?
Basic telecommunication services being supplied atpresent byDepartment ofTelecom are
required tobesupplied tothose whoaskforthese ondefined terms subject totechnical feasibility.
After competition isintroduced forvoice telephone service, private operators would berequired to
supply voice telephone service tothepublic onterms andconditions tobespecified inthelicence
agreement.
8. What basictelecommunications doyourregulations permit tobesupplied onanon-public basis
(i.e.notrequired tobemade available tothepublic generally)?
Seeanswer 6above.S/NGBT/W/3/Add.34
Page9
9. What obligations orresponsibilities areincurred bystatus asapublic basictelecommunications
supplier andunder whatconditions? E.g.What kinds of"common carrier" likeobligations areimposed
(e.g.withregard touniversal service), andonwhom?
Theobligations andresponsilities ofDoTasasupplier ofpublic basic telecommunications
areGoverned bytheIndian Telegraph ActandIndian Telegraph Rules. Some oftheobligations of
private voice telephone service supplier areasfollows:
Thecompeting voice telephone service supplier shallprovide theservice intheservice area
toanyindividual orlegalperson without anydiscrimination. Theprivate operator shallprovide 10per
centofDirect Exchange Lines asvillage public telephones. Theprivate voice telephone service supplier
shallnotcharge fortheservice more thanwhatischarged bytheDoT.
10. What, ifany,restrictions arethere onorganising andoffering aprivate network bya
telecommunications supplier?
Private networks arelicenced bytheDirector General, Telecom. toprovide intra-organizational
communication ortoprovide communication among aclosed usergroup. PSTN connectivity isnot
permitted. PSPDN connectivity ishowever permitted.
11. Istheoperation ofpublic pay-phones reserved tomonopoly orexclusive suppliers?
Seeanswer toB.3.
PART III
Regulatory Issues
Inrespondingtothequestionsinthissection,participantsareaskedtoprovidespecificreferences
tothesource orstatus ofthemeasures concerned (e.g.where possible, acitation ofthelaw,regulation,
rule,guideline, decision ordecree).
Relationship between regulatory andoperational functions
1. Doanybasictelecommunications suppliers become involved, directly orindirectly, inmaking
regulatory policy? enforcement ofregulations? informulating standards orenforcing standards?
AtpresentbasictelephoneservicesareprovidedbyDoT.However,competitionisintheprocess
ofbeing introduced forsupply ofvoice telephone service. Details ofterms andconditions fortheprivate
suppliers havebeengiven inthetender document. ATelecom Regulatory Authority isproposed to
beestablished whowillberesponsible forthefollowing:
1. Fixation ofTariff.
2. Ensure technical compatibility among different service providers.
3. Revenue sharing arrangement between different service providers.
4. Protecting consumer interest, particularly inrespect of:S/NGBT/W/3/Add.34
Page10
(a) timetocontact
(b) timetorepair
(c) frequency ofbreak downs
(d) callcompletion rates
(e) fairbilling administration
5. Resolving disputes between service providers.
6. Spelling out/ensuring compliance oftimeframes formaking available localandDoT
longdistance circuits between service providers.
7. Facilitatingcompetitionandpromotingefficiencyinthesectorasalsofacilitatinggrowth
andinnovations inservices.
8. Protection ofnational security interest.
9. Ensuring compliance oflicence conditions byalloperators andservice providers and
thestated overall pricing policy.
10. Ensuring effective compliance ofuniversal service obligations.
11. Rendering advice totheGovernment inthenational context ontechnology options,
service provision aspects andother allied matters concerned withtelecom industry in
general.
12. Anyother matter referred tobytheGovernment.
2. Isyourregulatory authority (orauthorities) alsoresponsible forformulating standards? for
enforcing standards?
TheproposedRegulatoryauthoritywillnothavejurisdictiononstandard-setting.Itwill,however,
beresponsible forenforcing standards.
3. Howmany levels ofgovernment (e.g.national, regional, statelocal) haveresponsibility for
regulationaffectingbasictelecommunications?Pleaseidentifyanddescriberelevantlevelsofgovernment
authority. Arethereanyprocedures enabling suppliers toresolve questions ordisputes theymayhave
ortoappeal adecision withtheregulatory body concerned? Ifso,please describe.
CentralGovernmenthasresponsibilityandauthorityforregulationsaffectingtelecommunications.
There arenoprivate suppliers ofbasic telecommunications atpresent excepting franchisees ofpublic
calloffices andDIDEPABXs inmulti-storeyed buildings whooperate them onspecified terms and
conditions. However, private operators willbepermitted toprovide voice telephone service verysoon
(seeanswer atA(i),PartII).ATelecom Regulatory body isproposed tobesetupwhich willhave
responsibilities asenumerated inAnswer 1.
Frequency allotment orassignment
4. What aretheprocedures, requirements andcriteria applied fortheallotment orassignment
ofradio frequencies?S/NGBT/W/3/Add.34
Page11
OnreceiptofLetterofIntent/LicencefromtheDoTforprovisionofaparticulartelecomservice,
theconcerned applicant willapply totheWireless Planning &Co-ordination Wing oftheMinistry
ofCommunications, forgrant ofaspecific wireless licence under theprovision ofSection 4ofthe
IndianTelegraphAct,1885,forthewirelessusages.Thislicencewillpermitutilisationoffrequency(ies)
intheproper frequency bandfortheestablishment andoperation oftheconcerned wireless element
ofthetelecom. service. Grant ofsuchlicence willbegoverned bynormal rules, procedures and
guidelines andwillbesubject tocompletion ofnecessary formalities.
Thefrequencies (including theassociated technical parameters) areassigned taking intoaccount
theinternational andnational frequency allocations Plans, existing/planned frequency usages, Electro
Magnetic Compatibility (EMC) andother technical, regulatory andadministrative aspects.
5. Doforeign telecommunications suppliers receive national treatment under these procedures
andcriteria?
Yes,Please alsoseeanswer toQuestion No.4.
Numbering andidentification codes
6. What aretheprocedures, requirements, andcriteria usedtoassign numbering andidentification
codes?
Forthepublic telephone network tobeoperated byaLicensee, numbering scheme tobeadopted
shallbeanintegral partoftheNational Numbering Scheme. Thiswillmean thatinanSDCA the
Licensee 'snetwork willbeapartofthelinked numbering scheme oftheSDCA andthenational SDCA
codewillbeapplicable toLicensees network also.
Note: SDCA -Short Distance Charging Area:Oneoftheseveral easintowhich anadministrative
unitisdivided theTELECOM AUTHORITY anddeclared assuchforthepurpose ofcharging
fortrunk calls.
7. Doforeign telecommunications suppliers receive national treatment under these procedures
andcriteria?
Please seeanswer toA(a)(iv)
Standards, typeapproval andequipment attachment
8. What typeofmandatory standards areinplace?
Some ofmandatory standards forprovision ofvoice telephone service areasunder:
1. Systems andinterface standards: Generally inconformity withrelevant ITUstandards
supplemented byspecific DoTstandards.
2. Material standards: Generally inconformity with Bureau ofIndian Standards
specifications supplemented byspecific DoTstandards.
3. Network standards: Asperspecifications issued byTelecom Engineering Centre of
DoT.S/NGBT/W/3/Add.34
Page12
9. When astandard isunder review oranewstandard isbeing developed byyourstandards
authority, isthereanopportunity forpublic review andcomment priortoitsadoption? Mayforeigners
participate inthisprocess? Maytheprivate sector participate inthedevelopment ofstandards? Ifso,
how?
Before finalizing anewstandard, alltheconcerned parties including themanufacturers, users
andothers interested areconsulted andtheirviews taken noteof.
10. What equipment issubject totypeapproval? Isself-certification allowed? Hasyourgovernment
concluded mutual recognition agreements fortelecommunications equipment certification? Arethey
required forforeign produced equipment?
Allequipment andsystems which areaninfrastructure orform anintegral partoftheDoT's
telecom network needtypeapproval. Allequipment andsystems which interface withtheDoT'stelecom
network needinterface approval.
11. Howistheability toattach terminal equipment tothenetwork regulated? What restrictions,
arethere onterminal equipment thatmaybeattached tothenetwork?
Onlyinterface approved terminal equipment ispermitted connectivity tothenetwork. Interface
approval isgiven byTelecom Engineering Centre ofDoT.
12. Maybasictelecommunicationssuppliersconnectedtothepublicnetworkusetheirownswitches?
Basic telecommunication services arepresently provided byDoTonly. However, withthe
proposed introduction ofcompetition inthevoice telephone service, theservice suppliers mayinstall
theirownswitches.
13. Does theGovernment require network-based suppliers topermit theattachment ofcustomer-
supplied terminal equipment?
Yes,provided suchterminal equipment hasbeeninterfaceapproved byTelecom Engineering
Centre ofDoT.
Interconnection
14. Ingeneral, howisinterconnection regulated inyourregime? What aretheregulations applied?
Atpresent basic telecommunication services areprovided byDoT. Competition isgoing to
beintroduced intheprovision ofvoice telephone service. Interconnection ofnetworks ofcompetitors
supplying voice telephone service willberegulated asperterms andconditions given inthetender
document. (Tenders havealready beenfloated forselecting companies whowillbesupplying voice
telephone service tothepublic).
15. Doyourregulations require network-based suppliers toprovide interconnection forother basic
telecommunications network orservices suppliers? Ifso,please describe.
DoTaswellasprivate service providers tobelicenced fortelephone service aretoprovide
leased circuits, junctions toexchanges etc.forvalue added service providers, paging andcellular phone
service providers, whohavebeenlicenced forsuchservices.S/NGBT/W/3/Add.34
Page13
16. Isinterconnection between leased circuits andpublic datanetworks permitted?
Yes,itispermitted forcustomer 'sownuseonly.
17. What aretherulesandregulations regarding thepricing ofinterconnection? Areinterconnection
charges setinrelation toanyprinciples (e.g. cost-oriented)? Isthere arequirement tosubmit
interconnection charges toaregulatory body forapproval? Arethese changes inthepublic domain?
Arethesame interconnection charges applied toallsuppliers requesting interconnection orarethey
negotiated onacase-by-case basis? What requirements orobligations existtopublic, make publicly
available, ortosupply details ofinterconnection agreements toregulatory authorities?
Interconnection charges forconnecting thenetwork ofprivate operator withthatofDoThave
beenworked outandaregiven inthetender document. Theproposed regulatory body willhave
jurisdiction overinterconnection charges.
Competitive safeguards
18. Whatkindsofsafeguardsdoesyourregimehaveagainstanti-competitivepracticesofmonopolies
ordominant suppliers insituations where theymaycompete withother firms tosupply certain basic
telecommunications inthedomestic market? intheinternational market?
Theproposed Regulatory Authority hastoevolve suitable safeguards.
19. Doyourregulations distinguish between dominant andnondominant suppliers? Ifso,what
arethedetails andhoware'dominant 'andnon-dominant defined? Arethereanysafeguards concerning
suppliers whohavemonopoly ordominant control ofaccess tocertain market ornetwork segments?
There arenosuchdistinctions atpresent, DoT/MTNL/VSNL being theonlysupplier. Please
seeanswer to18above.
20. Isthereanindustry-wideantitrustpolicyand/oranytelecommunicationsspecificantitrustpolicy?
What aretherules andregulations regarding mergers andacquisitions?
There isamonopolies Restrictive Trade Practices Commission Governed byMRTP Act.There
isnoantitrust lawspecific totelecommunication services.
21. Arethere anysafeguards concerning basic telecommunication suppliers alsoengaged inthe
manufacturing oftelecommunications equipment? Ifso,please describe thecontent andworking of
these safeguards?
Aspertender conditions, thecompany supplying thevoice telephone service willnotbeallowed
toengage itself intheproduction oftelecom equipment associated withtheprovision ofservice.
However, thesupplier ofservice mayparticipate insuchbusinesses through other registered companies
withtheirownidentities.
Pricing-related measures
22. What istheroleofthegovernment oranyrelated agency withregard toestablishing prices
(e.g.tariffs, access charges, accounting rates) orpricing policy? E.g., doesthegovernment setprices
oraccounting rates, directly orindirectly (e.g. price capsorrateofreturn controls), ordobasic
telecommunications suppliers determine these themselves? What requirements orobligations doesthe
government setregarding prices charged bymonopoly/dominant suppliers? orother suppliers?S/NGBT/W/3/Add.34
Page14
Presently, prices arefixed bytheGovernment. However, theproposed Telecom Regulatory
Authority willberesponsible fortariff regulations.
23. Doesthegovernment require tariffapproval ornotification and,ifso,whataretheprocedures?
What requirements regarding cost-accounting areputinplace toensure transparancy?
Presently, tariffs areapproved bytheGovernment andarenotified. Tariff willbethesubject
ofTelecom Regulatory Authority which isproposed tobesetup.
24. Towhatextent istheprinciple ofnon-discrimination applied inpricing policy? E.g.isatariff
package suchasavolume discount targetted foraspecific group allowed and,ifso,whataretheterms
andconditions applied? Areaccounting ratesapplied onanon-discriminatory basisbetween countries?
Ifaccounting ratesapplied indifferent agreements arenotthesame, whatarethecriteria usedtoarrive
atdifferent accounting rates? Aresome ofthese criteria required ordefined bythegovernment?
Prices forservices arerequired tobecharged from thepublic onnon-discriminatory basis.
Accounting ratewithdifferent countries aredetermined asperagreement ofVSNL, themonopoly
supplier ofinternational voice telephone service withthedistant international service providers.
25. Doanybasic telecommunications suppliers getinvolved insetting industry-wide tariffs?
Presently theGovernment ofIndiawhich setsthetariffs alsoprovide telecom services through
DoT. Theproposed Telecom Regulatory Authority willhavejurisdiction ontariff regulations.
26. Onwhat basis areprices (e.g. tariffs, access charges, accounting rates) determined? What
concepts areapplied regarding costs? Isthereageneral principle applied regarding allocation ofcosts?
Ifcost-oriented pricing ofbasic telecomunications usedorrequired bytheGovernment? Ifnot,do
basic telecommunications suppliers usecostoriented pricing?
TheGovernment presently fixestariff taking intoaccount thecosts, thevalue oftheservice,
affordability tothepublic andtheneedforgenerating adequate resources forrapid network expansion.
27. Arethere anyrules specific tothepricing ofanewservice?
Please seeanswer to26above.
Rights ofwayfortheconstruction ofinfrastructure
28. Arebasic telecommunications services suppliers permitted tobuild theirowninfrastructure
orfacilities? Ifso,what aretheprocedures andcriteria forauthorisation tobuild infrastructure or
facilities? What aretheprocedures, criteria, limitations orqualifications applied withrespect tothe
granting ofortheavailability ofrights ofwayfortheconstruction ofinfrastructure orfacilities?
Basic Telecommunication services arepresently supplied byDoT. Competition isgoing to
beintroduced intheprovision ofvoice telephone service. Theprivate operator canhavehisown
switching andlongdistance network within thetelecom circle/metro telephone district. Forbuilding
theinfrastructure suchpower oftheGovernment asarerequired willbeconferred ontheprivate operator
forseeking wayleave from localauthorities.S/NGBT/W/3/Add.34
Page15
29. Isnational treatment extended toforeign basic telecommunications suppliers under these
procedures andcriteria?
Seeanswer toA(iv).
Newtelecommunications services
30. Please describe anygeneral regulatory processes orprocedures thatapply todealing withthe
introduction of"new" telecommunications services. Prior toanyrelevant regulatory procedure having
beencompleted, isitnotpossible forsuchnewservices tobesupplied?
Thecompanies thatwillbeselected forproviding voice telephone service based onthetender
bidswillbepermitted toprovide services defined inthetender document. Anyother services desired
tobeprovided bytheprivate company willhavetobeapproved bytheDirector General, Telecom.
31. When anewservice becomes possible oravailable, whodetermines thestatus ofthenewservice
(whether itisbasic orvalue-added) andunder whatprocedure andtimeframe?
TheDirector General, Telecom willdecide whether thenewservice isbasic orvalue added
inareasonable timeframe.