The Telecom Regulatory Authority of India (TRAI) has approved the reference interconnect offer (RIO) of the three undersea cable owners ?? Reliance, Bharti and Tata Communications (formerly Videsh Sanchar Nigam Limited). This has paved the way for long distance operators (LDOs) and internet service providers (ISPs) to access the trio’s cable landing systems (CLSs) at competitive rates.
Currently, there are six CLSs, of which four are controlled by Tata Communications. Bharti and Reliance have a landing station in Chennai and Mumbai respectively.
TRAI had recommended CLS access in 2005. The interconnection-related regulation came in May this year. According to analysts, unhindered access to submarine CLSs under specified terms and conditions is an essential input for many telecom services. Unnecessary access restrictions limit operators’ competitive scope to provide international telecom services.
However, according to a Tata Communications spokesperson, since India has several submarine CLSs and the market for international connectivity is already competitive, a CLS access regulation is unlikely to have any major impact in the market.
Tata Communications, as owner of the Mumbai, Chennai and Ernakulam cable landing stations, was required to prepare its cable landing station RIO, including colocation charges, in accordance with international laws and submit the same to TRAI. The regulator has since examined and approved the same. Similarly, Bharti and Reliance were required to submit RIOs of their respective landing stations.
The regulation benefits new entrants in the international long distance segment such as AT&T, Sify and BT, apart from the large number of BPOs that use international bandwidth. It also ensures that operators with control over cable landing make bandwidth available at competitive rates and do not unduly delay activated capacity.
