India's TRAI WLL recommendation papers can be read at the following link (item 15):
trai.gov.in
Covering letter to recommedations:
D.O. No. CP/4-42/406-1/2000-FN
January 8, 2001
Dear Shri Ghosh,
Kindly refer to your Letter No. 10-2/2000-BS/Vol.I dated 9th October 2000 requesting a review of certain recommendations made by the TRAI on issues relating to Basic Service License. We had considered the issues mentioned and forwarded our views vide my letter No. 4-32/CP/411-3/2000-COM dated October 31, 2000. One issue on which we had not responded at that stage was the offer of WLL mobile Services by the Basic Service Operators as it was not part of the TRAI’s initial Recommendations. In our response we had stressed that the TRAI would like to follow its usual process of eliciting views of all the stakeholders and throwing the issue open for public debate in view of the criticality of the subject and its long term impact on both Fixed and Cellular Services.
To formulate its Recommendations on the above issues, TRAI in line with its established practice, has completed a process of public consultations to ensure transparency and due consultation in its decision making process. This process included preparation of a Consultation Paper on the matter which made an attempt to analyse various issues connected with WLL, particularly in the context of DOT’s reference to TRAI and raised questions on which inputs from stakeholders were solicited. In addition to the Open House discussions, TRAI had a meeting with a number of renowned telecommunication professionals, experts and others. TRAI received useful inputs from all stakeholders viz. Service Providers, consumers and consumer’s organisations, Financial Institutions, policy makers, lawyers, chartered accountants, academicians, research institutions, and Members of Parliament and Legislative Assemblies. All these inputs have been duly considered by TRAI, before finalising its Recommendations on the subject as set out in Annexe to this letter.
In the exercise undertaken, it has been TRAI’s endeavour to ensure that the interest of consumers remains the foremost test of any option being acceptable or unacceptable, such interests being sustainable long-term interests in terms of cost and quality for the individual user and growth, accessibility and the resultant tele-density for the masses. Pros and cons of giving mobility on the WLL platform have been carefully considered. In our deliberations we have endeavoured to answer four main questions viz
(i) Whether WLL with mobility should be permitted;
(ii) If it is to be permitted what should be its extent i.e. how much mobility is to be allowed;
(iii) The likely economic consequences of the mobility granted as in (ii) above and their impact on the main stake holders, and ;
(iv) In case the likely consequences of the grant of mobility are adverse for any of the stake holders in economic terms do these merit mitigation? If so, to what extent such mitigation is feasible and needed and what would be the modus operandi to achieve it.
In attempting to answer these questions, the arguments forwarded by both sides i.e. those who favour mobility on the WLL platform and those who oppose it, have been taken into account and their validity examined.
At the end of the aforesaid process, the TRAI has arrived at the conclusion that as the WLL mobility is not the same as that of the Cellular Mobile Services and that the disturbance expected to be created in the level playing field by the BSOs introducing this service can be evened out by making necessary policy changes, permitting WLL with mobility within the local area i.e. Short Distance Charging Area (SDCA) will be in the best interests of the consumer and the telecom services in the country. The same has therefore been recommended by us.
In the course of the public consultation the Cellular Mobile Operators have stressed the point that some terms and conditions of the present licensing regime place them in a disadvantageous position vis-à-vis the basic service operators. These according to them are making the level playing field uneven. The effect of these may be further aggravated if WLL mobility is permitted. These are indicated below:
i) License fee and revenue share percentage
ii) Spectrum charges
iii) Inter-connection principles and charges.
iv) Demarcation of service areas
v) Scope of the licensed service
Consequent upon the offering of WLL mobile services by the BSOs and its effect on the level playing field the TRAI is of the view that for the Cellular Services to maintain their competitive ability, some policy changes and ameliorative measures would need to be adopted. TRAI has therefore recommended bringing down the license fee (revenue sharing) of the Cellular Operators to the level of Metro and ‘A’ Circles of the Basic Service Operators i.e. 12 %, increasing the number of Points of Interconnection, permitting the CMSOs to provide fixed phones based on their GSM Network infrastructure, and allowing them to retain as their collection charges and cover for bad debts 5% of the total amount of long distance calls and other revenues that the CMSOs collect from their subscribers which they pass on to the basic service operators.
So as to increase competition among BSOs in a service area, the CDMA band of 20 MHz in the 800/ 900 MHz band is recommended to be distributed among four operators in each Basic Service Area i.e. 5 MHz each instead of existing 8 MHz. The entry fee and percentage revenue share license fee should be the same as already recommended for Basic Services. As Basic Service tariff rates will continue to apply for wire-line as well as WLL fixed and hand held terminal mobility within the SDCA, TRAI does not recommend any additional Entry Fees for the Spectrum. Existing mode of charging for spectrum should be applied for new operators also. The basis of charging for WLL frequency spectrum in the CDMA band and the cellular mobile spectrum in the GSM band should be identical.
The Authority believes that these Recommendations are consumer friendly and in public interest. These will increase the level of competition in the industry, thus stimulating demand for mobile service resulting in greater tele-density in both rural and urban areas.
The recommendations along with the text of this letter have been placed today on the TRAI’s web site (www.trai.gov.in) for public information.
Yours sincerely,
(M.S.Verma)
Shri Shyamal Ghosh
Secretary,
Department of Telecommunicatios,
Sanchar Bhavan,
New Delhi
Encl: Recommendation Document as Annexe along with supporting documents |
