VSNL against cable landing stns regulation

The Tata group-owned Internet and telephony major Videsh Sanchar Nigam Ltd (VSNL) has opposed the Telecom Regulatory Authority of India's (Trai's) move to regulate Cable Landing Stations (CLS). The move has been supported by other players.

VSNL is of the opinion that issues regarding CLS access can be resolved through "ex-post regulatory measures", even though it suggested a broad guideline may be issued.

In its reply to the consultancy paper rolled out by Trai, VSNL said that"the access to essential facilities and co-location at CLS should be voluntarily published by the concerned landing station operator, and no ex-ante regulation should be resorted to".

The reply added Indian CLSs today are similar to that in the US in the 80s, and if US had stopped regulating CLSs at that time, then similarly, there is no need for any regulation in India as well. There is adequate competition in the country and the market forces will govern the access charges, which also form a part of the pricing.

According to VSNL, the new terabit consortium-based cables have provisions or open access at equal and non-discriminatory charges, which are being implemented in India very smoothly.

"As this is a complex issue and the situation would vary from place to place, it would be better if left to be decided by the concerned parties themselves. A broad guideline in this regard could be issued by the regulator, if needed," it added.

Meanwhile, other major telecos including AT&T, BSNL, Bharti and Verizon among others have the favoured Telecom Regulatory Authority of India's (Trai) decision to regulate CLS.

In an entirely opposite reaction to VSNL, Sify Communications said that the authority should specify charges for collocation and also access facilitation charges and should not be left to be commercial negotiations between the CLS operators.

According to Bharti Airtel, a cable station owner is required to submit its cost-based reference interconnect order (RIO) charges to Trai for approval.

Charges for co-location and access to CLS for landing facilities and any other ancillary services should be as per the Trai approved RIO charges at that cable station.

Trai had earlier suggested the need for a RIO and CLS access. The regulator had also issued a consultation paper on April 13, 2007, seeking comments from industry players.