TRAI ISSUES REGULATION ON REFERENCE INTERCONNECT OFFER (RIO)

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TRAI today notified ‘The Telecommunication Interconnection (Reference Interconnect Offer) Regulation, 2002’, including a Model Reference Interconnect Offer which will form the basis of a Reference Interconnect Offer (RIO) to be published by all Telecommunication Service Providers with Significant Market Power.

Availability of effective and expeditious interconnection between telecom networks is one of the most important factors for achieving effective competition and growth of the telecom sector. Existence of Regulatory guidelines help immensely in avoiding delays and disputes in the interconnection process and thus promote an environment for growth and competition. The model RIO and Guidelines have been issued by TRAI with the same objective in mind. The RIO has been prepared taking account of the requirements for Multi Operator Multi Service scenario in our country, the practices followed in other countries, and detailed discussions with the stakeholders.

The main features of ‘The Telecommunication Interconnection (Reference Interconnect Offer) Regulation, 2002’ are given below.

Main Features

1. The Regulation envisages that every telecommunication service provider holding significant market power shall publish a Reference Interconnect Offer (RIO) within 90 days of issue of this Regulation. This RIO will be based on the model RIO notified by TRAI, and will have to be approved by the Authority prior to it being published. A Service Provider shall be deemed to have significant market power if it holds a share of 30% of total activity in a licensed telecommunication service area.
2. The RIO published by the Service Provider shall form the basis for all Interconnection Agreements to be executed hereafter. The model RIO, which is generic in nature, brings forth the various principles and elements involved in proper and effective interconnection.
3. Interconnection Agreements are required to be entered into by and between all Service Providers based on the RIOs so published. However, by mutual agreement the two parties concerned i.e. the interconnection provider and the seeker may modify and/or add to the terms and conditions stipulated in the published RIO.
4. The Interconnection Seeker may either accept the conditions offered in the RIO in full and enter into an Interconnection Agreement with the Interconnection Provider on that basis, or accept the offer pending execution of an Individualised Agreement after negotiations.
5. Service Providers will not be required to obtain prior permission for entering into Interconnect Agreements, but after an agreement has been signed it will have to be registered with the TRAI in accordance with the TRAI Regulations.
6. The Model RIO contains a number of Articles (Main clauses), and Schedules. The Schedules could be modified as per service requirements, mutually agreed charges and other items. Annexes could also be added as per requirements.

• The Articles cover technical and commercial issues including Points of Interconnection and Interconnection Principles; Interconnection Provisioning Procedures; Technical Service Commitments and Fault Repairs; Technical Specifications and Standards; Network Management, Maintenance and Measurement; Network Integrity, Charging Mechanisms, Billing and Settlement; and Commercial Terms and Conditions.
• The Schedules provide location and description of Points Of Interconnect; Performance Standards; Charges for Miscellaneous Services; Charges for Sharing of Infrastructure Elements; Schedule of Standards and Specifications; and Interconnect Charges for origination, transit and termination.

 

g. Other salient features of the Model RIO include:

• Stipulation that interconnection with a minimum number of E1 ports as ascertained by the interconnection provider, required for the launch of the service, shall be provided within 90 days of payment of the demand note, unless found to be technically non feasible.
• The full capacity required should normally be provided within 6 months of the firm demand.
• Minimum guaranteed utilisation, payment for cancellation of demand, and payment of damages in case of delay etc.
• The Unbundled Network Element costs of both switching and transmission which shall form the basis for the Interconnect Usage Charge (IUC) for various types of calls.

(h) Along with the Model RIO, the Authority has also issued its Guidelines on RIO which, inter alia, include:

• Tables which provide interconnection principles for routing of different type of Inter-Network calls.
• Establishing a formal Coordination Committee for laying down detailed procedures and also try to settles matters of difference bet ween the two parties.

For details please see TRAI’s ‘The Telecommunication Interconnection (Reference Interconnect Offer) Regulation, 2002’ available on its Web Site "www.trai.gov.in".