It?s a direct clash of the titans in the telecom space. Arrayed on one side are telecom operators like Bharti Airtel, Reliance Communications & BSNL. On the other side are long distance infrastructure providers like PowerGrid Corporation of India Ltd (PGCIL) and Sify. The issue is whether the Telecom Regulatory Authority of India (Trai) should implement the much-delayed carrier access code (CAC), which would enable subscribers to choose the long distance operator of their choice to make STD/ISD calls.
While the major telecom operators have written to Trai that with long distance tariffs dropping significantly?from a high of Rs 10 per minute in 2001 to around Rs 1-1.30 per minute now?and high competition in the segment, there was no need to implement CAC now. The main reason cited by them is the high cost of network upgradation?upwards of Rs 25,000 crore.
However, companies like PGCIL and Sify, which have infrastructure II licence (IP 2) and stand to gain from CAC implementation, have unambigously told Trai that it?s high time CAC was made operational. In fact, PGCIL has written that it be allowed to sell calling cards directly to consumers.
Once implemented, CAC would allow consumers to continue with their existing service provider, but use the services of a cheaper service provider for making STD/ISD calls by dialling a code.
The operators have suggested that instead of CAC, Intelligent Network (IN) system implemented by Trai should be used to generate more competition. The IN system allows consumers to use calling cards of different telecom companies to make long distance calls. Interestingly, the Tata controlled VSNL, now Tata Communications, which was a monopoly ISD carrier several years back and since then lost the market share, wants CAC to be implemented.