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TP case study: fixed-mobile interconnection in India

Author

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  • Srivastava, Lara
  • Sinha, Sidharth

Abstract

The Telecommunications Regulatory Authority of India (TRAI) attempted, in late 1999, to introduce the calling party pays (CPP) regime for mobile cellular services, with a corresponding revenue-sharing arrangement between fixed and mobile operators. According to the revenue-sharing proposal, mobile operators in India were to be compensated for carrying traffic to and from the fixed networks. Under their original license conditions, fixed operators (usually one of the two state-owned incumbents) were not paying mobile operators for terminating calls on their networks. However, mobile operators had to compensate the state-owned incumbent for terminating traffic. This unfavourable environment for mobile operators has meant that mobile services have not been able to reach their full potential in India. There was great disappointment within the mobile industry when the TRAI's CPP order was overturned by the Supreme Court of India in early 2000, due to lack of jurisdiction. Since then, the enabling legislation has been amended. It is hoped that the new provisions of the TRAI Act will empower the regulator to establish a level playing field for mobile network operators. It is only through the creation of a suitable framework for interconnection that the TRAI will be able to ensure the success of telecommunications reform in India.

Suggested Citation

  • Srivastava, Lara & Sinha, Sidharth, 2001. "TP case study: fixed-mobile interconnection in India," Telecommunications Policy, Elsevier, vol. 25(1-2), pages 21-38, February.
    • Handle: RePEc:eee:telpol:v:25:y:2001:i:1-2:p:21-38
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    Cited by:

    1. Buys, Piet & Dasgupta, Susmita & Thomas, Timothy S. & Wheeler, David, 2009. "Determinants of a Digital Divide in Sub-Saharan Africa: A Spatial Econometric Analysis of Cell Phone Coverage," World Development, Elsevier, vol. 37(9), pages 1494-1505, September.

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