MINISTER OF STATE (INDEPENDENT CHARGE) OF THE DEPARTMENT OF
DISINVESTMNET, MINISTER OF STATE IN THE MINISTRIES OF PLANNING,
STATISTICS & PROGRAMME IMPLEMENTATION AND MINSTER OF STATE IN
THE DEPARTMENT OF ADMINISTRATIVE REFORMS & PUBLIC GRIEVANCES (SHRI ARUN SHOURIE)
(a): In the draft Chapter on Telecommunications of the Ninth Plan Mid Term
Review, the Planning Commission had, inter-alia, made the following observations
regarding opening of long distance services for competition.
(i) Free and full competition should be ensured from the beginning. It has to be
ensured that no artificial barriers like competitive bidding based on minimum
reserve price and restricting the number of players initially are imposed.
(ii) No entry restrictions except the one-time entry fee and financial soundness and
credit worthiness of the operators should be imposed. The quantum of entry fee
could be increased appropriately if the one recommended by TRAI is considered
inadequate to keep the non-serious players out.
(iii) Intra-circle long distance traffic has to be permitted to ensure freedom of choice of
long distance operator to the subscriber. The artificial distinction between intra-
circle and inter-circle long distance connectivity would become redundant in the
face of emerging technological innovations. Un-restricted competition among the
ISPs has already demonstrated the virtue of this approach to rapidly expand the
customer base and reduce cost to the customer at the intra-circle level and the
Internet telephony underlining the need to have free competition at the Intra-
circle level.`
(b ) & (c): No comments were received from the Ministry. However, the National Long-
Distance Services have been opened for competition from August 2000. Free and full
competition has been ensured removing all undue restrictions on entry.
(d): The final guide-lines approved by the Govt. for issue of licence for National
Long Distance Service are available on Department of Telecom`s web site
http://www.dotindia.com
