In its opinion on the Telecom Regulatory Authority of India's (Trai's) consultation paper on the opening up of domestic long-distance operations (DLDO) to the private sector by January 2000, the department has proposed a 20-year licence period.

DoT also wants a one-time tender for allowing the entry of private operators. On the question of a time frame for limited competition, DoT has said that there may be a review of the limited competitive arrangement after five years.

On the scope of the DLDO services, DoT feels that intra-circle DLDO services should be allowed, otherwise there would be practical difficulties in distinguishing between intra-circle and inter-circle calls.

In addition, dialling a number itself may become complex, which will overload theprocessors, and make it difficult to monitor and difficult for subscribers to comprehend. In the case of the intra-circle being included in the scope of DLDO services, DoT fears that the introduction of national long distance operators (NLDOs) will affect its revenues, but added that in case the intra circle is excluded it should be made applicable to all the telecom circles in the country. On the regulation of facilites, including the question of limiting the usage of backbone networks for national level data and voice communication to companies specifically mentioned in the New Telecom Policy (NTP), 1999, DoT has said that apart from such entities, only licensed NLDOs be permitted to set up infrastructure. DoT has also said that only the licensed NLDOs and entities named in NTP 99 be allowed to build infrastructure and offer voice and data communication. Further, only licensed NLDOs should be permitted to build and manage closed user groups (CUGs) and private networks involving different licenced serviceareas.

However, DoT has ruled out permitting infrastructure owners to become service providers. The present infrastructure owners have set up their network with a view to meet their own requirements. NTP 99 proposes to utilise their surplus capacity. DoT has also said that NLDOs must be required to set up their own infrastructure, in addition to existing infrastructure owners.

For ensuring adequate facilities in the future, DoT has proposed that the provisioning of facilities shall be a basic requirement for granting licence to NLDOs. As such, DoT has said that for the present only facility-based competition may be permitted, with the position being reviewed after three to four years subject to growth. On the issue of the area of operation for licences, DoT has said that only NLDOs may be permitted with obligation to ensure adequate penetration/roll out in all parts of the country. However, DoT wants that NLDOs not be allowed to set up STD PCOs, and permitted only to link VSNL with the access providers(APs) network. In addition, DoT has said that fixed and mobile service operators can interconnect within their service areas, with border crossing to be permitted only via the NLDO.