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Telecom Regulatory Authority Of India

The Telecommunication Interconnection Usage Charges Regulation, 2003

TELECOM REGULATORY AUTHORITY OF INDIA
India

The Telecommunication Interconnection Usage Charges Regulation, 2003

Act 4 of 2003

Published on 24 January 2003
Commenced on 24 January 2003
[This is the version of this document from 24 January 2003.]
[Note: The original publication document is not available and this content could not be verified.]

The Telecommunication Interconnection Usage Charges Regulation, 2003(4 OF 2003)

1030.

In exercise of the powers conferred upon it under section 36 read with clauses (ii), (iii) and (iv) of sub-section (b) of section 11(1) of the Telecom Regulatory Authority of India Act, 1997 as amended by TRAI (Amendment) Act, 2000, to fix the terms and conditions of interconnectivity between service providers, to ensure effective interconnection between different service providers and to regulate arrangements amongst service providers of sharing their revenue derived from providing telecommunication services, the Telecom Regulatory Authority of India hereby makes the following regulation:-

1. Short title, extent and commencement .-(i) This regulation shall be called "The Telecommunication Interconnection Usage Charges Regulation, 2003" (the Regulation) and supercedes the earlier Regulation dated 24th January, 2003 (1 of 2003) and its amendments dated 27th March, 2003 (1st amendment) and 16th June, 2003 (2nd amendment).

(ii)The regulation shall cover arrangements among service providers for payment of Interconnection Usage Charges, for Telecommunication Services, covering Basic Service that includes WLL (M) services, Cellular Mobile Services, and Long Distance Services (STD/ISD) throughout the territory of India.

(iii)The regulation shall be deemed to have come into force from the date of its notification in the Official Gazette.

2. Definitions .-In this regulation, unless the context otherwise requires,-

(i)"Act" means the Telecom Regulatory Authority of India Act, 1997 as amended by TRAI (Amendment) Act, 2000.

(ii)"ADC" means Access Deficit Charge.

(iii)"Authority" means the Telecom Regulatory Authority of India.

(iv)[ "BSO, CMSP, ILDO, NLDO and UASP" respectively mean the Basic Service Operator, Cellular Mobile Service Provider, International Long Distance Operator, National Long Distance Operator and Unified Service Provider.]

(v)"Ceiling(s)" mean(s) the upper limit(s) of a charge specified by the Authority from time to time over which such charges may not be offered.

(vi)"Floor" means a lower limit of a charge specified by the authority from time to time below which such charges may not be offered.

(vii)"Forbearance" means that the Authority has not, for the time being, notified any charge for a particular telecommunication service and the service provider is free to fix any charge for such service. The Authority, however, has a right to intervene at any stage after the introduction of the charge.

(viii)"Interconnection" means the commercial and technical arrangements under which service providers connect their equipment, networks and services to enable their customers to have access to the customers services and networks of other service providers.

(ix)"Interconnection Charge" means the charge for interconnection levied by an interconnection provider on an interconnection seeker.

(x)"Interconnection Usage Charge (IUC)" means the charge payable by one service provider to one or more service providers for usage of the network elements for origination, transit or termination of the calls.

(xi)"Interconnection Provider" means the service provider to whose network an interconnection is sought for providing telecommunication services.

(xii)"Interconnection Seeker" means the service provider who seeks interconnection to the network of the interconnection provider.

(xiii)"International Subscriber Dialing (ISD)" means the facility by which a subscriber can have direct connection between him (in India) with another end user in another country by means of direct dialing through licensed networks. This includes the coverage of the international sector by ILDO and the related national sector by NLDO and/or access provider.

(xiv)"LDCA/LDCC" respectively mean Long Distance Charging Area/Long Distance Charging Centre.

(xv)"Order" means the Telecommunication Tariff Order, 1999 as amended from time to time.

(xvi)"Originating Network" means the network to which an originator of a telecommunication message (voice and non-voice) is proximately connected to.

(xvii)"Originating/Transit/Terminating Service Provider" means the service provider whose network is used for originating/transit/terminating a telecommunication message (voice and non-voice) respectively.

(xviii)"Regulation" means the Telecommunication Interconnection Usage Charges (IUC) Regulation, 2003 (2 of 2003).

(xix)"Reporting Requirement" means the obligation of a service provider to report to the Authority at least 45 working days before implementing any new Interconnection Usage Charge for telecommunication services under "this Regulation" and any changes thereafter.

(xx)"SDCA/SDCC" respectively mean Short Distance Charging Area/Short Distance Charging Centre.

(xxi)"Set Up Costs of Interconnection" means the initial cost of any system up-gradation needed to provide the specific interconnection facilities requested.

(xxii)"Settlement Period" is the period at the end of which the inter-carrier billing IUC/ADC payments among service providers are to be settled, based on the record reconciliation process as may be finalised through mutual arrangements among the service providers.

(xxiii)"Significant Market Power (SMP)" means "A Service Provider holding a share of at least 30% of total activity in a licensed telecommunication service area. These services are categorised as Basic Service, Cellular Mobile Service, National Long Distance Service and International Long Distance Service". Where "Activity" would mean and include any one or more of the following:

(a)Subscriber Base

(b)Turnover

(c)Switching Capacity

(d)Volume of Traffic.

(xxiv)"Subscriber Trunk Dialing (STD)" means the facility by which a subscriber can have direct connection between him and another end user in another SDCA within India by means of direct dialing through the public long distance networks.

(xxv)"Terminating Network" means the network to which a receiver of a telecommunication message (voice and non-voice) is proximately connected to.

(xxvi)Transit Network" means the network through which telecommunication messages (voice or non-voice) from originating networks or other transit networks are transmitted and delivered to terminating or other transit networks.

(xxvii)"Usage Charge" means the charge levied by a service provider for carriage of telecommunication traffic on its network, i.e., for use of its network elements.

(xxviii)"WLL (M)" means limited mobility telephony service using wireless in local loop technology within a Short Distance Charging Area.

(xxix)[ Roaming means the ability for a cellular subscriber to automatically make and receive voice calls, data and to access other services while travelling outside the geographical coverage area of the home network, by using the visited network. It is national roaming when visited network and the home network of the subscriber are in the same country and it is international roaming when visited network and home network of the subscriber are in different countries.] [ Inserted by Noti. No. 409-8/2004-F.N., dated 11.4.2005.]

(xxx)[ "Cellular" means fully mobile service provided by CMSPs and VASPs through GSM, CDMA or only other technology.] [ Added by Noti. No. 409-5/2003-(F.N.), dated 11.4.2005.]

(xxxi)[] [ Entry renumbered by Noti. No. 409-8/2004-F.N., dated 11.4.2005.] Words and expressions used in this Regulation and not defined herein but defined in the Act shall have the same meanings assigned to them in the Act.

3. Interconnection Charges .-Interconnection Charges shall continue to be governed by "The Telecommunication Interconnection (Charges and Revenue Sharing) Regulation, 2001 (5 of 2001)" and The Telecommunication Interconnection (Port Charges) Regulation, 2001 (6 of 2001), except to the extent modified by this Regulation.

4. Interconnection Usage Charges (IUC).-The Interconnection Usage Charges are specified in Schedules hereto.

I-Termination Charges

II-Carriage Charges

III-Access Deficit Charge (ADC)

[Schedule IV-Interconnect Usage Charge (IUC) for Short Message Service (SMS)]

(i)Unless specifically provided in the Schedules to this Regulation, the Authority forbears with respect to other Interconnection Usage Charges.

(ii)[ The date of effect for actual implementation of IUC shall be 1st February, 2004.] [ Substituted by Notification No. 409-5/2003-(F.N.), dated 31.12.2003.]

(iii)The existing Interconnection Usage Charges arrangement between the Interconnecting networks in respect of the items as specified in this Regulation shall hold good till the date on which this Regulation comes in force.

(iv)All existing interconnect agreements/arrangements as on date shall stand amended on the date of actual implementation of this Regulation so as to conform to the present framework of the IUC regime and these shall be submitted to TRAI for registration within 15 days of implementation of this regulation, and for subsequent changes as per Reporting Requirement.

(v)IUC values specified in "the Regulation" shall also be applicable for all Reference Interconnect Offers by Significant Market Powers (SMPs).

5. Reporting requirement .-(i) All service providers shall comply with the Reporting Requirement as defined in section II in respect of Interconnection Usage Charges specified for the first time under "the Regulation", as also all subsequent changes, subject to the provisions of section IV above.

(ii)No service provider shall alter any Interconnection Usage Charge or any part thereof, without complying with the Reporting Requirement.

(iii)In respect of matters covered by the provisions of "the Regulation", they shall have an overriding effect over any Regulation, Direction, Determination and Order of the Authority, Reference Interconnect Offer and existing Interconnect agreement/arrangement between Service Providers.

(iv)[ Each service provider shall report to the Authority on quarterly basis, the ADC retained by it, wherever applicable, and also ADC paid by it to BSNL .-In addition, BSNL shall report, on quarterly basis, ADC payments received by it from each operator. This shall include both the components of ADC, namely, ADC paid in the form of percentage of Adjusted Gross Revenue and ADC on per minute basis for international incoming ][* * *] [ The words " and outgoing" omitted by Noti. No. 409-2/2007-(F.N.), dated 21.3.2007 (w.e.f. 1.4.2007).][calls. This quarterly report shall reach he Authority within 30 days of the end of the previous quarter:] [Substituted by Noti. No. 409-5/2005-(F.N.), dated 23.2.2006 (w.e.f. 1.3.2006). ]

[Provided that the provisions of this clause shall, on and after the 1st day of April, 2008, have effect as if the words "ADC paid in the form of percentage of Adjusted Gross Review" had been omitted and the provisions in this clause relating to reporting requirement after the said date shall be construed accordingly:Provided further that nothing contained in this clause shall apply on and after the 1st day of April, 2008.] [ Inserted by Noti. No. 409-22/2007-(F.N.), dated 27.3.2008 (w.e.f. 1.4.2008).]

(v)[ Reporting Requirement for carriage charges for long distance calls within India specified under paragraph (a) of Schedule II .-Every National Long Distance Operator shall, on quarterly basis, report to the Authority the per minute rate of carriage charge and the total amount of such carriage charge for long distance calls within India received by it from every BSO/CMSP/UASL/ILDO, separately, and every BSO/CMSP/UASL/ILDO shall, on quarterly basis, report to the Authority, the per minute carriage charges for long distance calls within India and the total amount of such carriage charge for long distance calls within India paid by them to every National Long Distance Operator, separately, and such quarterly report shall be submitted to the Authority within thirty days of the end of the previous quarter. [ Inserted by Noti. No. 409-12.2008-FN., dated 9.3.2008 (w.e.f. 1.4.2008).]

(vi)Reporting Requirement of Interconnection Usage Charge for Short Message Service (SMS) specified under paragraph (1) of Schedule IV .-Every BSO/CMSP/UASL/NLDO/ILDO shall, on quarterly basis, report to the Authority, the rate of Interconnect Usage Charge for SMS and the total amount of such Interconnect Usage Charge for SMS received by it from other BSO/CMSP/UASL/NLDO/ILDO and paid by it to other BSO/CMSP/UASL/NLDO/ILDO, separately, and such quarterly report shall be submitted to the Authority within thirty days of the end of the previous quarter.]

6. Review .- [(i) The Authority may, from time to time, review and modify Interconnection Usage Charge and Access Deficit Charge.

(ii)The Authority may also at any time, suo motu , or on the basis of reported information in terms of clause

(iv)of regulation (5) above or on reference from any affected party, and for good and sufficient reasons, review and modify any interconnection Usage Charge and Access Deficit Charge.]

7. Explanatory memorandum .-This Regulation contains at Annex A, an explanatory memorandum to provide clarity and transparency to matters covered under "the Regulation".

8. Interpretation .-In case of dispute regarding interpretation of any of the provisions of this Regulation, the decision of the Authority shall be final and binding.

I

1. Termination Charges

Termination charge for Local and National Long Distance voice calls to Fixed Wireline, Wireless in Local Loop (Fixed), Wireless in Local Loop (Mobile), Cellular Mobile Telephone Service (both 2G and 3G) shall be uniform at the rate of Re. 0.20 (twenty paise only) per minute and the termination charge for incoming International Long Distance voice calls to such Fixed Wireline, Wireless in Local Loop (Fixed), Wireless in Local Loop (Mobile), Cellular Mobile Telephone Service (both 2G and 3G) shall be uniform at the rate of Re. 0.40 (forty paise only) per minute.]

2. Origination Charges

Forbearance.The Originating Service Provider shall retain origination charges from the residual after payment of the charges for carriage, termination and access deficit.

3. Carriage Charges

Carriage charges have been specified in Schedule II.

4. Access Deficit Charges

Access Deficit Charge (ADC) has been specified in Schedule III.

II

CARRIAGE CHARGES

(a)Carriage charges for Long Distance calls within India

TABLE 1(Amount in rupees per minute)

Carriage charges per minute for Long Distance calls within India

As per mutual agreement between the service providers subject to a ceiling of Rupees 0.65 per minute irrespective of the distance.

(b)Transit Charges for intra-SDCA calls:

Forbearance, subject to the following condition:Direct interconnection between Access Providers is mandatory. For exceptional cases of Intra-SDCA, trnasit, operators may decide the charges through mutual negotiation. However this shall be less than Rs. 0.15 (fifteen paise only) per minute.

(c)Carriage charges for International Long Distance calls including International termination charge (ie. International settlement):

Forbearance, subject to the following condition:The service providers may mutually agree to the sharing of any surplus, subject to the approval of the Authority.

(d)[ Trunk Automatic Exchange (TAX) transit charges : Trunk Automatic Exchange tansit charge in all cases, other than transit charge for accessing the Cellular Mobile Telephone Service of Bharat Sanchar Nigam Limited by Cellular Operators which is governed by the Telecom Regulatory Authority of India (Transit Charges for Bharat Sanchar Nigam Limited's Cellone Terminating Traffic) Regulation, 2005 (10 of 2005), shall be less than Re. 0.15 (fifteen paise only) per minute and, subject to the said limit, may be decided by the concerned service providers through mutual commercial arrangement.

(e)Transit Carriage Charge from Level II Trunk Automatic Exchange (TAX) to SDCA: Transit carriage charge for carriage of intra-circle traffic handed over from Cellular Mobile networks to Fixed network, from Level II Trunk Automatic Exchange (TAX) of LDCA in which the call is to be terminated, to SDCA, shall be Re. 0.15 (fifteen paise only) per minute, irrespective of distance.]

Notes to Schedule II:

(a)The Originating Service Provider shall retain origination charges from the residual after payment of the charges for carriage, termination and accesss deficit.

(b)[ The Carrier, as shown in Table II, would collect the applicable amounts for carriage and termination charge from the Originating Service Provider for various type of calls. The Carrier would pass on the termination charge for terminating the traffic to the Terminating Service Provider as per Schedule I.]

(c)The call from/to fixed line to/from WLL(M) would be treated as a local call, if the call destination is within the SDCA where the call originated. Calls from/to fixed line to/from WLL(M) would be treated as long distance calls if the call terminates outside the SDCA from where the call originated.

TABLE IIApplicability of Carriage Charge(F=fixed or WLL(Fixed): W=WLL(M); C=Cellular Mobile)

Type of Traffic	Carriage Charge	Carrier(Handover at)
Within SDCA
W↔F/W	Nil for direct connectivity/Applicable tendem usage as in Schedule II(b)	BSO1/BSO2(Tandem)
W↔C	Nil(Tandem:Metro)/	BSO(Tandem : Metro) BSO (Level II TAX)
	TAX usage carriage charge (Legel II TAX)
F/W/C↔ILD	As above since ILDO handover is at LDCC TAX	BSO(TAX)
Intra Circle i.e. Inter (SDCA)
•	Carriage as per details in Schedule II	BSO1/BSO2	Depending on Near end or Far end Handover
F↔W	Carriage as per details in Schedule II	BSO1/BSO2
F/W↔C	Same as Intra SDCA except TAX charge is "applicable"charge since more than one TAX may be involved.	BSO(Level II/I TAX)
C↔ILD	No carriage/tandem in case traffic is picked up or delivered at MSC

ANNEXURE AExplanatory Memorandum

1. The telecommunication Interconnection Usage Charges Regulation issued on 29th October, 2003 had initially envisaged the implementation of the revised IUC regime by 1.4.2006. As per this regulation, all existing interconnect agreements/arrangements as on date were to stand amended on the date of actual implementation of this regulation, i.e., 1st December, 2003, so as to conform to the framework of the revised IUC regime and these have to be submitted to TRAI for registration within15 days of implementation of this Regulation, and for subsequent changes as per Reporting Requirement.

2. Some of the service providers have now sought clarification on a number of issues relating to

•IUC applicable for unified access services•Numbering, Routing, Point of Interconnections•Carriage Charges•Reconciliation issues•Calls between CMSPs (including BSNL) where direct connectivity has not yet been implemented.•Implementation details from BSNL.•The clarifications on the issues raised by Service Providers will be issued in the first week of December, 2003.

3. In view of the above, the date of implementation for the Telecommunication Interconnection Usage Charges Regulation, 2003 (4 of 2003), dated 29th October, 2003 will now be 15th December, 2003 and the service providers have to file with the Authority the amended interconnect agreement, in conformity with this Regulation latest by 23rd February, 2006.

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