Trai

lR;eso t;rs

Telecom Regulatory Authority of India
(ISO 9001 : 2000 Certified Organisation)

Annual
Report
2008-2009
(ISO 9001 : 2000 Certified Organisation)

(ISO 9001:2000 Certified Organisation)

Annual Report
2008-09

Mahanagar Doorsanchar Bhawan, Jawhar Lal Nehru Marg,
(Old Minto Raod), New Delhi-110002
Telephone : +91-11-2323 3466, 2322 0534, 2321 3223, 23236308
Fax No: +91-11-23213294,
E-mail : ap@trai.gov.in
Website : http://www.trai.gov.in

Annual Report 2008-09 i

Letter of Transmittal

To the Central Government through Hon’ble Minister of Communications and
Information Technology

It is my privilege to forward the 12 th Annual Report of the Telecom Regulatory
Authority of India to be laid before each House of Parliament. The report is
for the year 2008-09. Included in this report is the information required to
be forwarded to the Central Government under the provisions of the Telecom
Regulatory Authority of India Act, 1997, as amended by TRAI (Amendment) Act,
2000.

The report contains an overview of the Telecom Sector and a summary of the
key initiatives of TRAI on the regulatory issues with specific reference to the
functions mandated to it under the Act. The Audited Annual Statement of
Accounts of TRAI has also been included in the report.

(Dr. J.S. Sarma)
Chairperson
Dated : 4th November 2009

Annual Report 2008-09 iii

Contents

Particulars Page No.
Part A: Mission, Aims and Objectives 1–2
Part B: Composition of Authority 3
Part C: Overview 5 – 27
 Overview of Telecom Sector 5 – 15
 Overview of Broadcasting Sector 16 – 24
 Developments In Tariff Regulation 24 – 25
 Measures to Protect the Interest of Consumers 25
 Monitoring of Quality of Service (Qos) 25 – 27
 Agenda for Action 27
Part I: Policies and Programmes 29 – 88
1.1 : Review of General Environment in the Telecom Sector 31 – 44
1.2: Review of Policies and Programmes 45 – 54
Annexures to Part I 55 – 88

Part II: Review of working and operation of Telecom Regulatory Authority 89 – 110
of India

Part III: Functions of Telecom Regulatory Authority of India in respect of 111 – 164
matters specified in Section 11 of TRAI Act

Part IV: Organizational matters of Telecom Regulatory Authority of India 165 – 219
and Financial performance

4.1: Organizational matters Telecom Regulatory Authority of 167 – 172
India
4.2: Audited Accounts of Telecom Regulator Authority of India 173 – 195
for the Year 2008-09
4.3 Audited Contributory Provident Fund Accounts of TRAI for 197 – 219
the Year 2008-09
List of abbreviations used in the compilation 220 – 222

Annual Report 2008-09 v

List of Tables
Table 1.1 Total Number of Licenses issued for Service Areas and Number 57
of Licensees offering services as on 31st March 2009 (other than
BSNL and MTNL)

Table 1.2 Service Area wise and Operator-wise details of subscriber Base 58 – 60
of Basic Services (wireline) as on 31st March, 2009

Table 1.3 The total DELs installed by Basic Service Operators and the total 61
Waiting List as on 31st March, 2009

Table 1.4 Details of Equipped Switching Capacity, Net Capacity addition, 62 – 64
etc. in respect of Basic Service Providers as on 31st March, 2009
Vis-à-vis 31st March 2008

Table 1.5 Circle-wise and Operator-wise details of Public Call Offices as 65 – 67
on 31st March, 2009 vis-à-vis 31st March 2008

Table 1.6 Circle-wise and Operator-wise status of VPTs as on 31st March 68 – 70
2009

Table 1.7 Subscriber Base of Mobile (GSM and CDMA) Services from 71
March, 2005 to 31st March, 2009

Table 1.8 List of Wireless Service Providers Service Area wise as on 31st 72 – 78
March, 2009

Table 1.9 Additional GSM Wireless Subscribers added and annual growth 79
rate in different circles during 2006-07, 2007-08 and 2008-09

Table 1.10 Number of VSAT Customers as on 31st March, 2009 79

Table 1.11 Number of PMRTS Customers as on 31st March 2009 80

Table 1.12 Subscriber Base and other details as reported by ISPs 81 – 86

Table 1.13 List of Internet Telephony Service Providers as on 31st March 87
2009 who have reported the start of services

Table 2.1 Wireless Rural Subscriber Base (in million) 97

Table 2.2 Subscriber Base of Wireless Operators 98

Table 3.1 Telecommunications Tariff Orders (Amendments) 114

Table 3.2 Regulations issued by TRAI during 2008-09 117

Table 3.3 List of Recommendations made by the Authority during 128
2008-09

vi Annual Report 2008-09

A.
MISSION, AIMS AND
OBJECTIVES
A.1 Preamble much ahead of the targeted date in
the year 2010. The total number of
1. The Telecom Regulatory Authority of broadband subscribers as on 31st
India (TRAI) has always endeavoured March 2009 was 6.22 million and in
to encourage greater competition addition there were 11.09 million
in the telecom sector together with Internet subscribers. In Broadcasting
better quality and affordable prices and Cable Sector there are more than
in order to meet the objectives of 82 million Cable TV subscribers with
New Telecom Policy, 1999. Vide a more than 60,000 Cable TV Operators
Notification dated 9th January, 2004 across the country.
of the Government; Broadcasting
and Cable Services also have been 3. Significant policy and regulatory
brought within the definition of initiatives have led to the Indian
‘telecommunication service’ in Telecommunications Sector undergo
terms of section 2(k) of the Telecom a major process of transformation.
Regulatory Authority of India Act, TRAI through its growth oriented
1997 as amended by the TRAI and consumer driven regimes has
(Amendment) Act, 2000. A number helped Indian Telecommunications to
of policy initiatives were taken become the show piece of economic
to transform the telecom sector reforms. Commendably maintaining
including the broadcasting and the fine balance that the regulatory
cable services to extend the scope, activity calls for, TRAI has focused
availability and reach of these services on optimized network build-up and
in India. efficiency of operations. With the
help of well-timed interventions and
2. The Telecom Sector in India has
forbearances, TRAI has led the telecom
shown remarkable growth during
sector from a monopolistic to an open
the last decade propelled largely by
unprecedented demand of mobile mature market. This is driven by
telephony. India has become second growth and competitive forces, to the
largest telecom network in the world admiration and benefit of the Indian
after China. Current growth of around Consumers who are consequently
15 million connections per month, enjoying a wide choice of services
puts us on the strong footing to with the lowest tariffs in the world.
achieve the target of 500 million lines Thus, with calculated steps in the right
by the time of printing of this report, directions, India has become not only

Annual Report 2008-09 1

the second largest but also the fastest v Establishing an interconnection
growing telecommunications market regime that allows fair, transparent,
globally. prompt and equitable
interconnection,
A.2 Mission of TRAI
v Re-balancing tariffs so that the
4. TRAI’s mission is to create and objectives of affordability and
nurture conditions for the growth operator viability are met in a
of telecommunications including consistent manner,
broadcasting and cable services in
the country in a manner and at a v Protecting the interest of consumers
pace which will enable India to play a and addressing general consumer
leading role in the emerging global concerns relating to availability,
information society. pricing and quality of service and
other matters,
A.3 Aims and Objectives of TRAI
v Monitoring the quality of service
5. The goals and objectives of TRAI
provided by the various operators,
are focused towards providing a
regulatory regime that facilitates v Providing a mechanism for funding of
achievement of the objectives of net cost areas/ public telephones so
the New Telecom Policy (NTP) 1999. that Universal Service Obligations are
As shown by the various initiatives discharged by telecom operators for
mentioned later in this Report, the
spread of telecom facilities in remote
goals and objectives of TRAI are as
and rural areas,
follows:

v Increasing teledensity and access v Preparing the grounds for smooth
to telecommunications in the country transition to an era of convergence of
at affordable prices, services and technologies,
v Making available telecommunication v Promoting the growth of coverage
services which in terms of range, of radio in India through commercial
price and quality are comparable to and non-commercial channels,
the best in the world,
v Providing a fair and transparent v Increasing consumer choice in
policy environment which promotes reception of TV channels and
a level playing field and facilitates choosing the operator who would
fair competition, provide television and other related
services.

2 Annual Report 2008-09

B.
COMPOSITION OF
AUTHORITY
T he Telecom Regulatory Authority of India Act, 1997, as amended
vide the Telecom Regulatory Authority of India (Amendment) Act,
2000, specifies that the Authority shall consist of a Chairperson and not
more than two whole-time Members and not more than two part-time
Members.

During the Financial Year 2008-09, the constitution of the Authority was
as below:

Name Designation Date since holding
the post

Shri Nripendra Misra Chairperson 22.03.2006
Shri A.K. Sawhney Member 29.06.2006
Shri R.N. Prabhakar Member 27.02.2007
Prof. N. Balakrishnan Part-Time Member 26.09.2006
Dr. Rajiv Kumar Part-Time Member 23.01.2007

The Chairperson and other members shall hold office for a term not
exceeding three years, as the Central Government may notify in this
behalf, from the date on which they enter upon their offices or until they
attain the age of sixty five years, whichever is earlier.

Shri Nripendra Misra, on completion of the three years tenure, demitted
his office on 21st March 2009.


C.
OVERVIEW
T RAI during the financial year 2008-09, continued its work of regulating
the telecom sector, as a forward looking regulator, and took number
of initiatives which facilitated development of telecom sector including
broadcasting and cable services in terms of growth of subscriber base,
growth of telecom network and greater emphasis on protecting the interest
of consumers. In this part of the report, an overview of the initiatives
taken by TRAI in Telecom and Broadcasting Sectors; Developments in
Tariff Regulation; Measures to protect the interests of Consumers; and
Monitoring of Quality of Service have been discussed briefly. The details
on these aspects have been enumerated in Part I, Part II and Part III of this
report.

TelecoM SecToR
2. An overview of the important activities in the telecom sector
undertaken by TRAI during the year are enumerated in the
following paragraphs.

3. The total subscriber base (both wireless and wireline) of telecom
sector in India during the financial year 2008-09 crossed 400 million
mark with 429.72 million subscriber as on 31st March 2009. The
growth of subscriber base during 1999-2009 is indicated below:

Growth of Subscriber base from 1999 to 2009 (in million)


Box 1: Major achievements during the Financial
Year 2008-09 in Telecom sector
v The total wireless subscriber base {GSM, CDMA and WLL (F)} stood at 391.76 million
at the end of financial year.
v The number of wireline subscribers on 31st March 2009 was 37.96 million.
v On an average, more than 10 million subscribers were added every month during
the financial year.
v The total number of PCOs in the country as on 31st March 2009 was 6.20 million and
the number of VPTs was 5.61 million.
v The overall teledensity at the end of March 2009 was 36.98% as compared to
26.22% ending March 2008.
v The rural teledensity at the end of March 2009 was 15.20% as compared to 9.20%
ending March 2008
v There were 13.54 million internet subscribers on 31st March 2009 as compared to
11.09 million on 31st March 2008.
v Besides the internet subscribers mentioned above, there are 117.82 million wireless
data subscribers who are accessing internet through wireless (GSM and CDMA)
networks.
v The number of broad-band connections on 31st March 2009 was 6.22 million
compared to 3.87 million for the same period during previous year.

(a) Recommendations on “Terms and Supplementaries at one year
and Conditions for Publication interval.
of Integrated Telephone v Only one authorized agency for
Directory for Fixed line the first six years.
Telephones”
v Selection through an open bid
4. TRAI on 24th April 2008 sent its from amongst the experienced
recommendations on terms and printers of telephone
conditions for publication of directories.
integrated telephone directory
v ‘Opt-out’ approach to be followed
for fixed line telephones to
by telephone subscribers. For
DoT. The salient features of the
new customers provision for
recommendations are as under:
option in the enrolment form to
v Printing through authorization be made by operators.
of selected agency on license v Telephone Directory to be priced
service area basis. in accordance with selection
v Directory of fixed line telephone criteria.
to be printed on a triennial basis. v TRAI to issue determination/
Main Directory in the first year guidelines for publishing the


Telephone Directory on website for the existing licensees may
by service providers. not be available in one lot. It was
5. TRAI has accordingly, formulated in this context that the Authority
guidelines for printing of integrated had recommended that those
telephone directory SSA-wise for who do not get accommodated
fixed line telephones. The details of in the first phase will be placed
these guidelines and other related in the queue and will be
issues of this recommendation have allotted spectrum as and when
been discussed in Part-III of this available on the same terms
report. and conditions as granted to the
licensees in the first phase.
(b) Recommendations on
v In view of the future expected
Permitting New Entity for
technological advancements,
allocation of 3G Spectrum.
the Authority recommended a
6. In response to the Recommendations review after three years.
of TRAI on “Allocation & Pricing of
Spectrum for 3G and BWA Service” (c) Recommendations on “Terms
dated 27th September 2006, the and Conditions of Licence
DoT had sought Authority’s view on for the National Integrated
the participation of other Indian / Directory Enquiry Service
foreign prospective operators for (NIDQS)
the 3G spectrum. The Authority 7. TRAI sent its recommendations on
revisited its earlier recommendations the terms and conditions of licence
on the DoT reference and after due for the National Integrated Directory
deliberations the Authority gave its Enquiry Service (NIDQS) for fixed
recommendations as below: and mobile telephones to DoT on
v The auction for 3G licensees 19th June 2008. Following the earlier
should be restricted to existing recommendations of TRAI dated
UAS / CMTS licensees. 5th May, 2005, the Department of
Telecommunications (DOT) had
v The spectrum module for auction sought the terms and conditions of
should be 2 X 5 MHz. licence for the National Integrated
v The auction mode as Directory Enquiry Service (NIDQS).
recommended earlier may be TRAI had followed consultation
accepted. process on various issues involved in
the provision of National Integrated
v The total availability of spectrum
Directory Enquiry Service (NIDQS) by
should be made public at the
issuing a consultation paper. Taking
stage of the auction so that the
into account the comments received
bidders are fully aware regarding
from stakeholders during public
the first and subsequent phase
consultations, TRAI formulated its
of allocation on the price
recommendations on the terms and
determined by the auction.
conditions for the proposed new
v It is conceivable that the total licence for the National Integrated
quantum of spectrum required Directory Enquiry Service (NIDQS)


Box 2: Major Recommendations made during the year 2008-09:
v Recommendations on Terms and Conditions for Publication of an Integrated
Telephone Directory for Fixed Line Telephones
v Recommendations on permitting New Entity for Allocation of 3G Spectrum
v Recommendation on Foreign Investment Limits for Broadcasting Sector
v Recommendations on Terms and Conditions for National Integrated Directory
Enquiry Service (NIDQS) for Fixed and Mobile Telephones
v Recommendations on Allocation and Pricing for 2.3-2.4 GHz, 2.5-2.69 GHz & 3.3-3.6
GHz bands
v Recommendations on the modifications proposed by DoT on Reserve Price and
Auction process for 3G services
v Recommendations on the modifications proposed by DoT on spectrum Usage
Charges and One Time Spectrum Enhancement Charges
v Recommendations on Restructuring of Cable TV Services
v Recommendations on Mobile Virtual Network Operator (MVNO)
v Recommendations on Issues related to Internet Telephony
v Recommendations on the Policy Guidelines and operational Issues for Television
Audience Measurement / Television Rating Points (TRPs)
v Recommendations on Provision of Calling Cards by Long Distance Operators
v Recommendations on issues related to entry of certain entities into Broadcasting
and Distribution activities
v Recommendations on Modifications proposed by DoT on the spectrum usage
charges for 3 G Services.
v Recommendations on Growth of Value Added Services and Regulatory Issues
v Recommendations on Media Ownership
v Recommendations on Lock-in period for Promoter’s Equity and other related issues
for Unified Access Service Licensees (UASL)
v Recommendations on An Approach to Rural Telephony – Suggested Measures for
an Accelerated Growth

for fixed line and cellular mobile share; tariff etc. The details of
telephones. The recommendations the recommendations have been
deliberated on issues like scope of discussed in Part-III of this report.
licence; market structure; eligibility
criteria; entry fee; licence fee; (d) Recommendations on
performance obligations; bank ‘Allocation and Pricing for 2.3-
guarantee; duration of licence; data 2.4 GHz, 2.5-2.69 GHz & 3.3-3.6
sharing and data security; listing GHz bands’
in NIDQS for directory enquiry 8. TRAI on 11th July 2008 made its
service; interconnection; revenue recommendations on ‘Allocation


and Pricing for 2.3–2.4 GHz, 2.5– (DoT) had sought TRAI’s
2.69 GHz bands, & 3.3–3.6 GHz recommendations on the need and
bands.’ The Authority had sent its timing for introduction of MVNO
recommendations to the Government as well as terms and conditions of
on “Allocation and pricing of spectrum the license to be granted to such
for 3G and broadband wireless access operators. After going through the
(BWA) services” on 27th September, consultation process on the various
2006. When the Authority had given issues involved in introduction of
its recommendations, the spectrum MVNO in India, TRAI formulated its
in the 2.3–2.4 GHz and 2.5–2.69 GHz recommendations on the need and
bands were not available for allocation timing for introduction of MVNO
and therefore, the Authority had then as well as terms and conditions of
recommended that allocation and the license to be granted to such
pricing methodology of spectrum operators.
in these bands would be decided as 10. The Authority recommended
and when these are made available. definition of a MVNO as “MVNO is
After World Radio Congress-07 a licensee in any service area that
(WRC-07), these bands have been does not have spectrum of its own
identified as International Mobile for access service, but can provide
Telecommunications (IMT) bands and wireless (mobile) access services
that spectrum in these bands is now to its own customers through an
available for allocation for the BWA agreement with the licensed access
services. Accordingly, the Authority provider, UAS/CMTS Licensee”.
has given these recommendations. MVNO cannot participate in
Based on technological advancement; spectrum auction for Access Services
availability of spectrum for allocation; in their service area, as they cannot
and after analysis of comments have their own spectrum. Similarly,
received from the stakeholders ISPs can become MVNOs if it does
through the consultation process not have BWA spectrum. The details
the Authority formulated its of recommendations have been
recommendations on this subject. discussed in Part-III of this report.
The details of the recommendations
(f) Recommendation on Issues
have been discussed in Part-III of this
Related to Internet Telephony
report.
11. Telecom Regulatory Authority of
(e) Recommendation on Mobile
India (TRAI) issued recommendations
Virtual Network operator
on “Issues Related to Internet
(MVNo)
Telephony” on 18th August 2008.
9. TRAI released its recommendations The Authority suo-motu initiated
on ‘Mobile Virtual Network Operator a consultation process on “Issues
(MVNO)’ on 6th August 2008 Related to Internet Telephony”. The
enabling the introduction of MVNOs Authority considered regulatory
in the Indian Telecom network. framework which is technologically
Department of Telecommunications neutral, enables developments,


innovations and growth of the National and International Long
telecom sector for benefit of Distance Operators” on 20th August
common masses while ensuring that 2008. These recommendations
business models of access telecom are a result of extensive review of
service providers are not adversely mechanisms of providing choice of
impacted. Due importance was given long distance carrier to the Indian
to level playing filed among various consumer. To make it possible for
service providers, Interconnection the subscribers with the means of
mechanism, Inter-connect usage selecting Long Distance Carrier,
charges (IUC), Numbering, Lawful the Authority has recommended
interception, Emergency number to the Government that National
dialing, Interoperability, Quality and International Long Distance
of Service etc. Overall licensing operators be permitted to offer
framework has been protected while national and international long
permitting unrestricted Internet
distance voice calls, respectively,
telephony to ISPs. After following the
through calling cards. These
consultation process, the Authority
recommendations would lead to
made recommendations to the
the following benefits:
Government.
12. These recommendations are a v Consumer would be able to
step forward towards developing exercise choice of long distance
supportive regulatory environment, operator for the national and
encouraging technological advance- international calls through calling
ments, enabling convergence, making cards.
unrestricted Internet telephony v Competition would be
available and boosting of broadband encouraged and affordable
penetration. These enabling innovative tariff plans would
recommendations will put Indian become available.
telecom sector in tune with global
trends. The grey market tendencies v Consumer can subscribe to any
shall be curtailed. It is envisaged that access provider and still not
the customers will ultimately benefit be dependent on the access
from cost effective and innovative provider for long distance calls.
Internet Telephony service. The
v Through long distance calling
business model of ISPs will improve
cards customer can make long
without impacting access providers
distance calls from telephone of
due to increase in the telephony call
any access provider.
volumes.
(g) Recommendation on “Provision (h) The Telecommunication Tariff

of Calling Cards by National and (Forty eighth Amendment)
International Long Distance order 2008
operators.” 14. TRAI issued The Telecommunication
13. TRAI sent its recommendations Tariff (Forty Eighth Amendment)
on “Provision of Calling Cards by Order 2008 on 1st September 2008.


Through this Tariff amendment order v Lifetime customers need not
and by Direction dated 1st September recharge more than once in 6
2008, the Authority mandated months for remaining connected
several regulatory measures to
v Customers to get key tariff
improve transparency in tariff offers
information in vernacular
in access service and other consumer
language also at all the retail
protection measures. The Authority
outlets of the service providers
in the past had issued several other
and their franchisees
regulatory mandates in the interest
of consumers. The Authority noted v No change in mobile number
that despite several such measures when subscriber change tariff
there is a feeling among consumers plans or move from prepaid to
that various offers being made by postpaid or vice versa.
access service providers are not
v Blackout days (customary/festival
transparent and consumer friendly.
days on which free/concessional
The Authority had been receiving calls/SMS are not available)
complaints from consumers and limited to a maximum of 5 days in
consumer organizations which, a calendar year. Such days to be
inter-alia, highlighted transparency pre-specified and no subsequent
issues. The Authority, therefore, alteration or addition permitted.
decided to have a re-look at the
regulatory framework relating to 15. The Direction issued by the Authority
transparency in the matter of tariff alongwith this tariff order covered
offers through the well established various issue like; Disclosure of
information, Provisions for smooth
process of public consultation. The
migration between plans and billing
highlights of the Tariff Order are as
platforms, Streamlining Promotional
under:
offers, Differential Voice/SMS tariffs
v Subscribers to get full talk time on festival/customary days etc.
on talk time recharges, barring an
(i) Telecom Unsolicited
administrative fee not exceeding
Commercial Communications
Rs.2 per recharge and applicable
(Second Amendment)
taxes.
Regulations, 2008
v Subscribers to automatically
16. Telecom Regulatory Authority
get the benefit of straight
of India (TRAI) notified the
tariff reductions without any
“Telecom Unsolicited Commercial
preconditions of any explicit
Communications (UCC) (Second
action by the subscriber, for
Amendment) Regulations, 2008” on
example, sending SMS etc. 21st October 2008. This is yet another
v Customers in existing lifetime step of the Authority to strengthen
plans can migrate to new lifetime the regulatory framework towards
plans with lower entry fee curbing Unsolicited Commercial
without having to make additional Communications. In order to
payment or recharges. curb the Unsolicited Commercial


Communication (UCC), TRAI had or HSBC etc., numeric codes like
formulated Telecom Unsolicited 58888 or 56262 etc.), it becomes
Commercial Communications very difficult and time consuming
Regulations, 2007 (4 of 2007) dated 5th for the service providers to
June 2007. Further, the regulation was identify the service provider from
amended in March 2008 to improve whose network such unsolicited
the effectiveness. The highlights of commercial communication
the Amendment Regulations are: originated. Therefore, the
v provisions mandating that even Authority directed the service
in case of complaints forwarded providers that the alpha-numeric
after the expiry of the period identifier of all commercial SMSs
of seven days as specified, the which are sent with only sender
Originating Access Provider identification and without the
shall take action in terms of the normal ten digit mobile number
provisions of sub-regulations (3) shall be prefixed by the code of
and (4) of regulation 16 so as to the service provider and the code
ensure that no complaint which of the service area as specified
has been made to a service by the Authority (for example in
provider in accordance with sub- form of XY-HSBC, where X stands
regulation (1) goes unredressed. for the code allotted to the service
provider and Y stands for the
v provisions have been service area) and this has been
incorporated in the second implemented from 1st Feb.2009.
amendment to the principal
regulations providing for time (j) Recommendations on Growth
limits to be specified by the of Value Added Services and
Authority under a direction Regulatory Issues
under section 13 of the TRAI 17. Recommendations on Growth of
Act, 1997. The Authority has Value Added Services and Regulatory
directed all Access Providers to Issues were issued on 13th February
adhere to the limits of 28 days in 2009. The value added service (VAS)
case of complaints against their market in India has a great potential
own telemarketers and 35 days for growth and revenue from this
in case of complaints against growth potential is expected to reach
telemarketers belonging to other above INR 250 billion by the year
telecom service providers. 2009-10 and more than 30% of the
revenue of the telecom access service
v Whenever a subscriber makes
providers in the next 5-7 years. TRAI
a complaint of unsolicited
recognised the need to address
commercial communication by
the various issues involved in the
SMS with sender identification
growth of value added services in a
other than the normal ten digit
transparent and coordinated manner
mobile or fixed number, (Viz.,
so that these services achieve the
alphanumeric names like SBI life


potential growth. After going through broadband services being offered
the extensive consultation process and marketed as a good business
and in house analysis on the issues practice.
involved, the Authority forwarded
v Provide information regarding
its suo moto recommendations to
the Government on growth of value contention ratios adopted for
added services and regulatory issues. different services by service
These recommendations will pave providers in their tariff plans
the way for orderly growth of value submitted to TRAI, manual of
added services and consumers will practice, call centers and on their
also be benefited with new and websites.
enhanced services/value added
v Publish contention ratio for
services at competitive rates. The
different Internet/broadband
details of the recommendations
services on their website
have been discussed in Part III of this
quarterly to facilitate subscribers
report.
to take informed decision.
(k) Guidelines for better Internet / v Ensure availability of minimum
broadband service required bandwidth in their
18. The Authority issued guidelines to network according to maximum
all service providers (ISPs, UASLs, contention ratio suggested by
CMSPs, BSOs) providing Internet/ TRAI for different services based
broadband to ensure better services on number of subscribers.
to their subscribers. There have been (l) Telecommunications Inter-
complaints from the subscribers connection Usage Charges (Tenth
regarding inadequate broadband Amendment) Regulations
speed being provided by the Internet
19. The Telecommunications Inter-
Service Providers. Most of the
connection Usage Charges (Tenth
complaints alleged that the available
broadband speed is lower than the Amendment) Regulations 2009 was
subscribed speed. Non-availability of issued on 9th March 2009. The key
subscribed speed at the Subscriber’s features of the Regulations are:
end deteriorates the performance v Termination charge for all types
of applications run by users and in of domestic calls viz fixed to fixed,
turn restricts the utility of broadband fixed to mobile, mobile to fixed
connection. Authority initiated a and mobile to mobile has been
Consultation Process on the subject reduced to 20 paise per minute
and based on the outcome of the from 30 paise per minute.
consultation process, TRAI issued
guidelines. The salient features of v Termination charge for incoming
the guidelines are: international calls would be 40
paise per minute against the
v Provide adequate information to existing charge of 30 paise per
subscribers regarding Internet/ minute.


v Ceiling on carriage of domestic for Unified Access Service Licenses
long distance calls retained at 65 (UASL), declaration of special dividend
paise per minute. Non-reduction in case of additional equity etc.
of this ceiling would encourage After following the due consultation
national long distance operators process, the Authority made its
to expand into rural areas. recommendation to the DoT on 12th
March 2009. The recommendations
v Origination charge has not been covered issues like Lock-in period
specified as it would be residual for Promoter’s Equity; Definition
from tariff after payment of other of Promoters; details of equity
charges. and networth of licesee company;
v Transit/Carriage charge from Reporting & Certificate requirement;
Level-II Trunk Automatic Additional Share Capital; Dividend /
Exchange to Short Distance Special Dividend; Pledging of Shares
Charging Area(SDCA) to be 15 etc.
paise per minute as against (n) Recommendations on “An
existing charge of 20 paise per approach to Rural Telephony
minute – Suggested measures for an
v Intra SDCA transit charge to be accelerated growth.”
less than 15 paise per minute 22. The Authority made its suo motu
down from less than 20 paise per recommendations on “An approach
minute to Rural Telephony – suggested
v Termination charge for 3G voice measures for an accelerated
calls shall be same as 2G voice growth” on 19th March 2009.
calls These recommendations include
concrete measures to overcome
v The new charges to be effective
the various constraints coming in
from 1st April 2009.
the way of increasing rural telecom
20. It is expected that this framework penetration. The salient points of the
will promote growth of the recommendations are:
network.
v Effective empowerment of the
(m) Recommendation on Lock-in USOF Administrator.
period for Promoter’s equity v Separation of USOF from
and other related issues Department of Telecom and
for Unified Access Service establishment of a framework
licensees (UASl) on the lines of National Highway
Authority should be considered.
21. Department of Telecommunications
sought recommendations of the v USO Fund Act / Rule should be so
Authority on the considered views amended that the funds accruing
of the Telecom Commission on the to USOF through levy is directly
restrictions relating to the issue of managed by the organization
lock-in period for promoter’s equity and is not routed through the


budgetary process of the Union places such as hospitals /schools
Government. etc.
v The USOF should follow the v Amendment in section 10 of the
bidding process only where Indian Telegraph Act, 1885 to
it is necessary and it should curtail delay in obtaining right of
concentrate primarily on way permission.
planning and monitoring of the
v The USOF should negotiate
implementation of the scheme. with the Department of Post
v The USOF should determine so as to facilitate the following
the subsidy support for setting activities:
up mobile towers in different
 Working as sales outlet of
regions and any IP-I/CMTS/ telecom service providers
UASL operator, who sets up
the tower in the designated  Bill Collection centers
SDCAs and share it, should be based on mutually agreed
paid subsidy depending on the commission
number of operators sharing  subscriber verification
the tower.
 Telecom service providers
v The USOF may devise a scheme can offer some commission
to call expression of Interest for bringing in new
from IP-I/NLD/UAS licensees subscribers
to provide optical fibre from  A pilot scheme for a duration
the USOF subsidized towers to of 3-6 months in each state
nearest block headquarter. USOF for gaining experience.
shall give subsidy at the rate of
maximum one lakh per KM per (o) Regulation on the standards
sharing (to be distributed over a of Quality of Service of Basic
period of three years) provided Telephone Service (wireline)
it shares it with at least one and cellular Mobile Telephone
access service provider.
Service
v USOF may device a scheme 23. TRAI released Regulations on the
/ agreement with state standards of Quality of Service of
governments in which broadband Basic Telephone Service (wireline) and
connection are facilitated by Cellular Mobile Telephone Service,
USOF while state Government on 20th March 2009. The detailed
would assure fixed number background of the Regulations have
of broadband connections for been discussed in Part III of this
Government offices/ public report.


BRoADcASTING & cABle SecToR 26. The present status of foreign
investment limits for different
24. An overview of the important
segments of Broadcasting sector
activities in the broadcasting sector
along with the recommendations of
undertaken by TRAI during the year
the Authority are tabulated as shown
are enumerated in the following
at the bottom of the page.
paragraphs
(a) Recommendations on 27. The recommendations also cover
the procedure for approval and
Foreign Investment limits
methodology for calculation of foreign
for Broadcasting Sector
investments in different segments of
25. TRAI made its recommendations broadcasting.
on Foreign investment limits for
broadcasting sector on 26th April (b) Recommendations on
2008. The Ministry of Information Restructuring of cable TV
and Broadcasting had sought Services
recommendations of the Authority
on Foreign Investment limits for 28. TRAI sent its Recommendations on
various segments of Broadcasting “Restructuring of Cable TV Services”
Sector. In line with its consultative to Ministry of Information and
approach, the Authority issued a Broadcasting on 25th July 2008. These
Consultation Paper on the subject recommendations are a step forward
for comments from the stakeholders to restructure Cable TV Networks to
before giving its recommendations ensure effective licensing compliance,
to the Government on Foreign attract investment, facilitate new
Investment limits for various value added services and encourage
segments of Broadcasting Sector. digitization. The Recommendations,
S. No. Segment Existing Limit Recommendations
1. Teleport (Hub) 49% (FDI+FII) 74% (FDI+FII)
2. DTH 49% (FDI+FII) FDI component 74% (FDI+FII)
not to exceed 20%
3. Satellite Radio No policy as on date* Being sent separately
4. HITS No policy as on date** 74% (FDI+FII)
5. Cable Network 49% (FDI+FII) 74% (FDI+FII)
6. FM Radio 20% (FDI+FII) 49% (FDI+FII)
7. Downlinking of TV 100% Status Quo
Channels
8. Uplinking of TV News 26% (FDI+FII) 49% (FDI+FII)
Channels
9. Uplinking of Non News 100% Status Quo
TV Channels
10. Mobile Television No policy as on date 74% (FDI+FII)

* Approval to one foreign Satellite Radio operator given through FIPB route.
** Permission for HITS operation given two Teleport licensees (49% foreign investment limit)


Box 3: The major highlights during the Financial Year 2008-09 in
Broadcasting & Cable TV Sector
v As on 31st March 2009, the maximum number of Free-to-Air (FTA) Channels and Pay
Channels being carried in the Cable Networks were 168 and 130 respectively.
v The total number of Set-Top Boxes (STB) installed in CAS notified areas of Delhi,
Kolkata, Mumbai and Chennai at the end of March 2009 were 7,70,053.
v As on 31st March 2009 there were 6 private DTH licensees apart from free-to air
DTH service of Doordarshan
v Subscriber base of DTH Operators as on 31st March 2009 was 13.09 Million
v Apart from All India Radio, there were 245 FM Radio stations in operation as on 31st
March, 2009
v As on 31st March 2009, there were 67 Licensed Community Radio Station and out
of these 41 stations were in operation.

inter-alia, covers issue like licensing 30. The Authority is of the view that
framework for LCOs / MSOs; eligibility Governmental intervention in the
criteria; entry fee for LCOs / MSOs; form of an enactment is not desirable
well defined structure of licensing at this stage. Therefore, self-
and Appellate Authority; well defined regulation through the Industry led,
complaint redressal mechanism; not-for-profit body BARC, has been
QoS norms for LCOs / MSOs; penalty recommended with Government
provision for non-compliance of Guidelines covering, BARC’s
license terms & conditions etc. Organizational Structure, Functioning
(c) Recommendations on and Methodology. The recommended
the “Policy Guidelines measures covered issues like
and Operational issues Framework for the Industry led body;
for Television Audience Suggested conditions for Rating
Measurement/ Television agencies; Sample Size; Technology;
Rating Points (TRPs)” Cross-holding; Mandatory Audit;
Competition in rating services etc.
29. The Ministry of Information
& Broadcasting had sought (d) Recommendations on “Issues
recommendations of TRAI on the relating to entry of certain
system and framework of Television entities into Broadcasting and
Ratings and the policy guidelines to Distribution activities”.
be adopted for rating agencies. The
Authority made its Recommendations 31. TRAI made its Recommendations
on the ‘Policy Guidelines and on “Issues relating to entry of
Operatinal issues for Television certain entities into Broadcasting
Auidence Measurement / Television and Distribution activities” on 12th
Rating Points (TRP)’ on 19th August November 2008. The Ministry of
2008. Information & Broadcasting had


requested TRAI, to examine the Broadcasting) may set up a
matter of allowing certain entities regular body to approve and
including State Governments, urban certify programmes as being
and local bodies, 3-tier Panchayati fit for broadcast as part of the
Raj bodies, publicly funded bodies, public service broadcasting
political bodies and religious bodies (PSB) obligation.
to enter into Broadcasting activities
v As a beginning in this direction,
which may include starting of
every private broadcaster may
broadcast channels or entering into
be mandated to carry such
distribution platforms such as cable
approved programmes at least
services, DTH etc.
for a total duration of thirty
32. After carefully examining several minutes in a week.
Constitutional and legal issues,
33. In order to provide funds for
relevant Constitutional provisions,
such public service broadcasting
the Constituent Assembly debates,
programmes, TRAI has further
the recommendations of the Sarkaria recommended to establish a Fund,
Commission and the judgments of to be known as the Public Service
Hon’ble Supreme Court, and also Broadcasting Obligation Fund, on
going through the consultation lines similar to the Universal Service
process and its own analysis the Obligation (USO) Fund in the telecom
Authority has recommended that sector, and imposing an annual Public
the present position as regards Service Broadcasting Obligation
the entry of these entities may levy on the private broadcasters in
be allowed to continue. TRAI has the country and a predetermined
recommended that the aspirations share from the percentage of gross
of the State Governments, as regards revenue being paid by the identified
broadcasting, should be adequately stakeholders in the broadcasting
met by Prasar Bharati and by sector.
imposing certain public service
34. Other detailed recommendations
broadcasting obligations on private
regarding entry of Political parties,
broadcasters as indicated below:
religious bodies, state Govt, into
v The preparation of content for broadcasting activities have been
public service broadcasting may discussed in Part III of this report.
be done by individuals including (e) Recommendations on 3rd
private broadcasters, NGOs, Phase of Private FM Radio
social action groups, etc., in Broadcasting – response
addition to Prasar Bharati, DAVP, to observations made by
State Governments and their Government
organs.
35. TRAI had sent its recommendations
v The Government of India on 3rd Phase of Private FM Radio
(Ministry of Information and Broadcasting on 22nd February,


2008. Subsequently, the Ministry v The Authority accepted the
of Information & Broadcasting had views of the Government on
requested for TRAI’s response on limiting the sources of News and
certain issues relating to TRAI’s Current Affairs for FM Radio and
recommendations in terms of the has recommended that a review
provisions of Section 11 of TRAI Act. for expansion of sources may be
The main issues on which response considered after three years
was sought from TRAI are as follows:
v The categorization of content
v Geographical basis for licensing to be treated as non-news and
– City vis-à-vis District current affairs broadcast is
v Restriction on ownership of acceptable. The scope of such
multiple channels content may be enlarged after
a period of three years after
v Change in ownership of reviewing the experience.
permission holder company
v The Authority has accepted the
v News and Current Affairs
views of the Government for
v Floor price of the bids continuing with the current level
v Automatic renewal of permission of floor price of the bids.

36. These issues were considered by v Automatic renewal of permission
the Authority and a response was with higher of the “future value”
sent to the Ministry of Information of the One Time Entry Fee paid
& Broadcasting on 28th November by a bidder or the latest One
2008. The highlights of the response Time Entry Fee paid by any
sent by the Authority are:- bidder for a similar category
v Continuation of city level city in the same state has been
licensing in the larger interest of recommended with the existing
expediting the process. permission holder having the
first right of refusal.
v The Authority strongly reiterated
its earlier recommendation (f) The Telecommunication
for removal of ceiling limit (Broadcasting and Cable)
of ownership of 15% of total Services (Third) (CAS Areas)
permitted FM radio stations in Tariff (Third Amendment)
the country by any permission order, 2008
holder. 37. The Telecommunication (Broad-
v While accepting the casting and Cable) Services
Government’s views on allowing (Third) (CAS Areas) Tariff (Third
restructuring before start of FM Amendment) Order, 2008 was issued
radio broadcasting, the Authority on 26th December 2008. These
reiterated its views on restrictions tariff amendment orders reflect
on change in ownership after the market development in Set top
start of FM radio broadcasting. box prices and accordingly provide


reduction in the rentals of standard rental of Rs. 34/- instead of Rs. 45/-,
tariff package for set top boxes for and another with Security deposit of
cable TV services in CAS areas. Rs. 750/- instead of Rs. 999/- with a
monthly rental of just Rs. 22/- instead
38. The CAS Tariff Order dated 31st
of Rs. 30/-.
August, 2006 provided ceilings of Rs.5
(excluding taxes) per pay channel per 40. These tariff amendment orders
month and Rs.77 (excluding taxes) per have been made applicable from 1st
month for basic service tier consisting January, 2009.
of minimum 30 free to air channels,
(g) The Telecommunication
at subscriber level in CAS notified
(Broadcasting and Cable)
areas. After permitting 7% increase,
Services (Second) Tariff (Ninth
the ceiling for pay channel has been
Amendment) order, 2008
increased to Rs. 5.35/- per pay
channel per month at subscriber end 41. TRAI issued the Telecommunication
(excluding taxes), and basic service (Broadcasting and Cable) Services
tier may cost upto Rs. 82/- per month (Second) Tariff (Ninth Amendment)
to the consumer (excluding taxes). Order, 2008, on 26th December 2008.
This order is aimed at providing
39. The tariff amendment order for CAS
inflation linked adjustments in the
areas provides for reduction in the
security deposit and monthly rental tariff ceilings for cable TV services
for set top box. This reduction has in non-CAS areas. Earlier, the non-
become necessary with fall in the CAS Tariff order as amended on 4th
current prices of the set top boxes. October 2007, made the cable charges
Earlier, the tariff order for cable TV being paid at different levels of the
services in CAS areas provided two distribution chain as on 01.12.2007
mandatory schemes to the consumers as a ceiling, while making provisions
in which the security deposits and for increases on account of new pay
monthly rentals were specified based channels. In addition, the existing
on the then prevailing prices of the tariff order also provides for specific
set top boxes. Since prices of set top ceilings at the subscriber level based
boxes have come down during last on the number of channels and the
two years of the implementation of city in which a subscriber is getting the
CAS tariff order, it was necessary to cable TV services. Since one year has
revisit the same and to reflect it in already passed, it was felt necessary
the tariff order in order to pass on to revisit the ceilings for the optimal
the benefits to the consumers. The growth of the cable TV sector. It was
security deposit and rentals of set felt necessary to provide for inflation-
top boxes have accordingly been linked increase in the ceiling for
revised, and now service providers different players of delivery chain of
are required to offer two schemes, cable TV services, and accordingly 7%
one with Security deposit of Rs. 200/- increase has been provided based
instead of Rs. 250/- with a monthly on whole sale price index movement


for cable services in non-CAS areas. migration on QoS front whenever
Similarly, the ceilings at subscribers CAS is extended by the Ministry of
end based on the number of pay Information & Broadcasting in their
channels in different parts of the areas of operation in future. The
country have also been revised to main features of the Regulations are
reflect this permitted increase. as follows-
42. These tariff amendment orders v Procedure for connection,
have been made applicable from 1st disconnection and reconnection
January, 2009. of cable services within seven
(h) The Standard of Quality of days,
Service (Broadcasting and Cable v Making it compulsory for cable
Services) (Cable Television – operators to issue bills and
Non-CAS Areas) Regulations receipts to cable TV subscribers,
2009
v Complaint handling and its
43. The Standards of Quality of Service redressal, including maintaining
(Broadcasting and Cable Services) helpdesk from 8.00 am to 8.00
(Cable Television – Non-CAS Areas) pm everyday,
Regulations, 2009 was issued on 24th
February 2009. These regulations v Standards for provisioning of
will empower the consumers for Digital Decoders and Set Top
receiving quality service from the Boxes for voluntary CAS,
cable TV service providers in non-
v Compulsory technical standards
CAS areas. These regulations have
to be observed by the cable
been made effective from April 1st,
operators, including a good
2009. After issuing QoS Regulations
quality, measurable signal
for cable TV services in CAS notified
strength at subscriber’s end,
areas and for DTH service, the
maintaining six-hour power
Authority went for the consultation
backup etc.,
process on issue of Quality of
Service in Non-CAS Areas. Based 44. The Authority believes that these
on the inputs of the consultation QoS Regulations would go a long
process and internal analysis the way in protecting the interests of the
Authority issued QoS regulations for cable TV consumers at large.
highly fragmented non-CAS cable
TV networks across the country. (i) Recommendations on Media
The Authority, while framing ownership
these regulations, appreciated 45. TRAI released its Recommendations
the voluntary digitalization and on Media Ownership on 25th
adoption of addressability by some February 2009 to Ministry of
of the service providers in non-CAS Information & Broadcasting. Ministry
areas, and accordingly provisions of Information and Broadcasting
have been made for seamless had sought TRAI’s recommendations


on the need for cross media and the composition of their
ownership restrictions in India for subscription packages during
radio, broadcasting and print medias. first six months of enrolment
After going through the consultation to the subscription package or
process on the various issues relating during the period of validity of
to Media Ownership in India, the a prepaid subscription package,
international practice and on the whichever is longer.
basis of its own analysis, the Authority
v The DTH operators have been
formulated its recommendation on
mandated to proportionately
the issue. The Recommendations
reduce the subscription charges
covers issue like cross media control/
for a package from which any
ownership (Horizontal Integration);
channel is removed for first
vertical Integration; limits on
six months of enrolment or
number of licensor by single entity;
during the period of validity of
concentration of Control / Ownership
a prepaid subscription package,
across media; cross Control /
whichever is longer or to replace
Ownership across telecom and
the channel with a channel of
media companies etc. The details
same genre and language.
of the recommendations have been
discussed in Part III of this report. v Option to select the channel of
the same genre and language
(j) The Direct to Home in a subscription package to
Broadcasting Services (Standard replace a channel which has
of Quality of Service and become unavailable on the DTH
Redressal of Grievances) platform, has been given to the
(Amendment) Regulations, 2009 DTH operator.
46. The amended Regulation was v The option of choosing the
issued on 12 March 2009. The main
th
package with reduced charges
amendments made in the Quality of or the package with replaced
Service and Redressal of Grievances channel has been given to the
regulations for DTH Services are as subscriber.
under :
v Prior notice of fifteen days to be
v The DTH operators have been given by the DTH operator before
prohibited from charging any changing the composition of any
fee towards visiting charges or subscription package.
repair and maintenance charges
of DTH Consumer Premises v DTH operators have been
Equipment during the period of mandated to entertain
warranty for such DTH Consumer requests of DTH subscribers
Premises Equipment acquired for suspension of services if
on outright purchase basis. requested period of suspension
does not exceed three calendar
v The DTH operators have been months and does not comprise
prohibited from changing part of a calendar month


(k) Te l e c o m m u n i c a t i o n v Terms and conditions which
(Broadcasting and Cable should compulsorily form part of
Services) Interconnection (Fifth a Reference Interconnect Offer
Amendment) Regulations, for DTH or any other addressable
2009 system, such as Voluntary CAS,
IPTV, HITS etc., have been
47. The Authority issued the
prescribed.
Telecommunication (Broadcasting
and Cable Services) Interconnection v The distributors of TV channels
(Fifth Amendment) Regulations, 2009, employing addressable systems
on 17th March 2009. This amendment have been enabled to provide
essentially covers regulatory their services to commercial
provisions on non-discriminatory subscribers.
access to content, issues relating
to interconnection for addressable v It has been made mandatory for
platforms and issues relating to all interconnect agreements to
registration of interconnection be reduced to writing.
agreements. The main amendments
48. It is expected that these
made in the Interconnection
amendments to the existing
Regulations are as under:
Interconnection Regulations will
v The distributor of TV channels go a long way in facilitating access
is barred from seeking signals in to content on non-discriminatory
terms of “must provide” clause of terms for distributors of TV
the Interconnect Regulation from channels deploying addressable
a broadcaster for those channels platforms, which will in turn lead
in respect of which carriage to greater competition between
fee is being demanded by the various pay TV delivery platforms,
distributor of TV channels. bringing considerable benefit to the
v The distributor of TV channels consumers.
may however charge a fee for
(l) The Register of Interconnect
placement of the channel of a
Agreement (Broadcasting
broadcaster vis-à-vis channels
and Cable Services) (Fourth
of other broadcasters on its
Amendment) Regulation, 2009
distribution platform.
v Introduction and roll out of 49. The Authority issued the Register
voluntary CAS has been facilitated of Interconnect Agreement
by making it mandatory for all (Broadcasting and Cable Services)
Broadcasters to have Reference (Fourth Amendment) Regulation,
Interconnect Offers for all 2009 on 18th March 2009. TRAI had
addressable systems. Further, issued regulations on 31st December,
minimum technical specifications 2004 for filing and registration of
for addressable systems have interconnect agreements entered
been specified. into by broadcasters with service


providers of different platforms. The DeVeloPMeNTS IN TARIFF ReGUlATIoN
details of interconnect agreements
51. TRAI has been given the
prior to amendment were being
mandate to regulate tariffs for
filed quarterly with TRAI by the
broadcasters and DTH operators. telecommunication services in the
However, the Authority noted that country. Availability of affordable
the industry practice is largely to and effective communications is
sign Interconnection Agreements on at the core of the vision and goal
annual basis, mainly for a calendar of the New Telecom Policy (NTP,
year or for the financial year. To 1999). This function is discharged
harmonize the regulation with the through Telecommunication Tariff
industry practice the Authority Orders issued by TRAI from time
has amended the regulation with to time. In the recent past, the
provisions for annual filing of Telecommunication Sector in India
interconnection agreements instead has witnessed the highest growth
of quarterly filing with the Authority rates in the world, propelled largely
by these service providers. by the unprecedented growth in
mobile telephone and expects
50. For better monitoring, newly achieving more in the coming years.
emerging service providers such Telecommunications is amongst
as HITS operators and IPTV service the sectors in India that are doing
providers are also required to file comparatively well amidst the
interconnect agreements entered economic downturn. A lot of hope
into by them with the Broadcasters is pinned on the sector creating new
annually with the Authority. The opportunities that will drive future
Authority has also decided that all the
growth. India’s telecom journey
interconnection agreements should
has seen the sector leapfrog from a
be in written form by the broadcasters
monopoly to a highly competitive
and MSOs. It is the responsibility of
market with one of the lowest tariffs
the broadcasters and MSOs to hand
in the World. Reforms in the sector
over such written agreements after
brought in private players, leading to
execution to the distributor of TV
greater competition, lower tariffs, and
channels. A provision for submitting
a significant increase in subscriber
a certificate in this regard has also
numbers.
been incorporated in the present
regulation. The Authority has 52. In the Broadcasting Sector
decided that the interconnection two tariff orders namely; The
filings may be kept by the Authority Telecommunication (Broadcasting
for a period of three years from the and Cable) Services (Second) Tariff
date of their filing or till the expiry of (Ninth Amendment) Order, 2008, and
the validity period of the agreement, the Telecommunication (Broadcasting
whichever is later and accordingly and Cable) Services (Third) (CAS
the regulations have been suitably Areas) Tariff (Third Amendment)
amended for this purpose. Order, 2008 were issued during the


financial year. These tariff orders are TRAI and 4 other organized by
aimed at providing inflation linked the CAGs registered with TRAI
adjustments in the tariff ceilings for on outsourced model) were
cable TV services in CAS and non-CAS organized during the year 2008-
areas. These tariff amendment orders 09
also reflect the market development
v Two day orientation program
in Set top box prices and accordingly
with CAGs and NGOs registered
provide reduction in the rentals of
with TRAI was organized on 22nd
standard tariff package for set top
& 23rd October, 2008 for the
boxes for cable TV services in CAS
benefit of the newly registered
areas. Also the Telecommunication
CAGs.
Tariff (Forty Eight Amendment)
Order, 2008 was issued during the v A meeting with all the CAGs
financial year providing measures to and NGOs registered with TRAI
improve transparency in tariff offers was held on 24th October, 2008
in access service and other consumer for better understanding of the
protection measures. problems of the Consumers
across the Country.
MeASUReS To PRoTecT THe
INTeReST oF coNSUMeRS v Formation of new Committee on
53. The Authority had been issuing Orders Telecommunication Consumers
/ directions to the service providers Education and Protection Fund
to enhance consumer transparency (CUTCEF) on 15th September,
in the matters of service provision. 2008 after expiry one year term
The following consumer protection of the old Committee.
measures were taken during the v Issue of Guidelines on 2nd March
year. 2009 to all Service Providers
v The Authority Issued a Direction providing Internet / Broadband
to the service providers on Services to ensure better
1st September, 2008 inter alia connectivity and improved
mandating provision of tariff Quality of Service.
information on each tariff plan
MoNIToRING oF QUAlITY oF
offered by them to telecom
SERVICE (QoS)
consumers with a view to ensure
transparency in the tariff plans. 54. TRAI is mandated to lay down the
parameters of quality of service to
v The 48th Amendment to the
be provided by the various service
Telecommunications Tariff
providers and to ensure the quality of
Order was issued with a view to
service. Accordingly, TRAI had issued
enhance consumer transparency
Regulation on Quality of Service for
and protection.
Basic and Cellular Mobile Services,
v Nine Consumer Education prescribing QoS benchmarks. On
Workshops (5 organized by 20th March, 2009, TRAI issued


The Standards of Quality of Basic through quarterly Performance
Telephone Service (Wireline) and Monitoring Report (PMR) received
Cellular Mobile Telephone Service from service provider. TRAI also
Regulations, 2009 reviewing the monitors Point of Interconnection
earlier regulation issued on the (POI) congestion through monthly
subject in the year, 2005. reports received from Cellular Mobile
Service Providers (CMSPs). Follow up
55. To regulate the Quality of Service
meeting with the service providers
to be observed by the MSOs/
were held for improving their
Cable Operators in CAS notified
performance with regard to quality of
areas of Delhi, Chennai, Mumbai
service. TRAI also monitors the level
and Kolkata, TRAI had issued the
of congestion at the POI between
Standards of Quality of Service
various Service Providers on Monthly
(Broadcasting and Cable Services)
basis. This parameter signifies the
(Cable Television – CAS) Regulation,
ease by which a customer of one
2006 in the year 2006. On 31 st
network is able to communicate
August, 2007 Direct to Home
with a customer of another network.
Broadcasting Services (Standards
This parameter also reflects as to
of Quality of Service and Redressal
how effective is the interconnection
of Grievances ) Regulation 2007
between two networks. The
was issued prescribing Standards of
benchmark notified by the TRAI in
Quality of Service benchmarks for
the QOS Regulations of July 2005 for
Direct to Home (DTH) Broadcasting
this parameter is <0.5%.
Services. In the financial year,
2008-09, Standards of Quality of 57. The POI Congestion Report analysis
Service (Broadcasting & Cable for the period ending March 2009
Services) (Cable Television – Non shows that the performance of
CAS areas) Regulation, 2009 was the CMSPs with the respect to the
issued prescribing the parameters congestion on POIs has deteriorated
for Cable TV services in Non in the report of March 2009 as
CAS areas. Also Direct to Home compared with the performance
Broadcasting Services (Standards of December 2008. During the
of Quality of Service and Redressal period Cellular Mobile Telephone
of Grievances) (Amendment) Subscriber base has increased from
Regulations 2009 was issued on 346.89 million in December 2008 to
12th March, 2009 to make certain 391.76 million in March 2009. The
amendments in the principal number of POIs having congestion
regulations dated 31 st August, 2007 has increased from 66 in December,
mentioned above. 2008 to 76 in March 2009. These
congestion reports were analysed
56. Performance of Basic and Cellular
and findings of the analysis are
Mobile service are monitored against
brought to the notice of general
the benchmarks prescribed by TRAI
public. The findings of the analysis
vide Regulation on Quality of Service
were placed on the website of TRAI
for Basic & Cellular Mobile Services


Trai

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Trai

Similar to Trai (20)

Recently uploaded

Recently uploaded (20)

Trai