GSM operators seek unified licensing soon

India's GSM cellular operators have urged the government to introduce comprehensive measures such as the unified licensing regime, unbundling of local loop, infrastructure sharing and restructuring of the access deficit charge regime in the upcoming National Telecom Policy (NTP) 2005.

Immediate introduction of unified licensing is necessary as technology has blurred the distinctions between licences and services reserved for it.

This will help investor confidence and attract more foreign investment, said Cellular Operators Association of India (COAI), the GSM association in a written communication to the Department of Telecommunications.

On the regulator, cellular operators has said that the policy 'should adopt a light touch approach to regulation', and Trai should also 'look at the option of drawing talent from private sector'.

Operators have also proposed that the OneIndia Plan have two distinct slabs""one for intra-circle and other for inter-circle, where the determination of rates be based on weighted average costs for carriage.

Reiterating the long-pending demand of unbundling of the local loop, operators have demanded that the new policy allow unbundling of copper by BSNL in addition to active sharing of infrastructure by the PSU, in a "fair manner".

Another key demand is that the policy restructure the existing Universal Service Obligation and Access Deficit Charge regimes. In NTP 2005, the objectives of USO should be "reviewed on an annual basis and should include incentives for private operators to enable them to enhance presence in rural areas," COAI said.

On ADC, operators said that the country should switch to a hybrid revenue share-based system, and this be merged with the USO regime. ADC should be applicable for rural wireline services only, and must be phased out in the next three years, they added.

Even as the government is yet to finalise the guidelines for 74 per cent FDI in the sector, cellular operators have said that it was important that terms and conditions are conditions are conducive so as to actually encourage the inflow of FDI.