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How same issues have been tackled elsewhere. Russell Southwood Balancing Act http: // e-mail:

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How same issues have been tackled elsewhere

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How same issues have been tackled elsewhere

How same issues have been tackled elsewhere

Russell Southwood

Balancing Act

http: //


How same issues have been tackled elsewhere

“Consultation paper on “Measures to promote competition in International Private Leased Circuits (IPLC) in India”, Telecom Regulatory Authority of India, June 2005Source:

The indian context

The Indian context

  • Intro’d competition in international long distance in 2002.

  • International tariffs not come down “to levels witnessed in other countries in Asia reflecting the lack of effective competition in the market.”

  • Landing station controlled by VSNL had become a “bottleneck facility”. Cables financed by club consortia. Others paying charges to VSNL

Representations to the regulator

Representations to the regulator

  • Higher and commercially non-competitive charges for international bandwidth hampering growth of broadband and internet

  • Non-permissability of reselling international bandwidth

  • Complaints from competitor international operators about co-location of equipment

  • BPO and ITES sectors unable to obtain competitive bandwidth

Methods used by regulators

Methods used by regulators

  • Fixing ceiling tariffs with reference to international benchmarks and general trends

  • Permitting reseller market, essentially non-facility based operators

  • Removing barriers for access to cable landing stations

  • Facilitating mutual sharing of landing station infrastructure and international capacity amongst carriers

  • TRAI has fixed ceiling tariff but “tariffs in other countries still appear to be lower”

Examples from elsewhere

Examples from elsewhere

  • In general: “…have forced various obligations on incumbents owning submarine cable system”.

  • Have applied general interconnect agreement/directives. Reference Interconnect Offer

  • Hong Kong: HTKI access and co-location at landing station or virtual co-location

  • France: Need to ensure equal access to international facilities for all operators

  • Canada: Teleglobe under obligation to share monopoly facility in non-discriminatory and fair manner

  • Singapore: To ensure more competition, wholesale intl on “retail-minus” basis with specified discounts

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