Cut leased lines rates: Trai

The Telecom Regulatory Authority of India has sought a reduction in both international and domestic leased line circuit prices in the country, which is market-driven and in line with the supply and demand situation.

"There should be a fall in leased circuit prices, proportional to the demand and supply of bandwidth in the country," Trai Chairman Pradip Baijal said at the third seminar on Convergence Communications organised by Indian Merchants' Chamber in Mumbai on Tuesday.

"If that is not seen, then the regulator will interfere and take steps to reduce the charges," he said.

On doing away with access deficit charges (ADC), Baijal said the charges would be further reduced, before it would be phased out in the next three-five years.

A second consultation paper on ADC would be rolled out in the next 15 days and on spectrum allocation in another 10-15 days, he said. However, Baijal did not divulge further details of the paper on both ADC and spectrum.

On the tele-density in the country, he said it has posted a meagre growth at around 1.92 per cent in 1998 from 0.02 per cent posted in 1948. However, after liberalisation it has posted a quantum leap of around 2.92 per cent and had posted a radical increase last year.

The tele-density in rural areas is not up to expectations, but is slated to pick-up momentum due to an increased interest by FMCG majors, including Pepsi and Coca-Cola in these areas, he said.

Speaking on unified license in telecom sector, Baijal said the regime would enable introduction of new technologies, which would help in reducing cost to the customer.

In the absence of the regime, telecom majors are unwilling to bring in new technologies, as they are not sure how the regulator is going to react.

Unified license is also good to the industry, as it would help in achieving a 'full play' of service as in the case of cable TV, he said.