The recommendations are qualified and based on assumptions of non-substitutability. The interconnect agreement is clearly in favour of fixed service providers as they can retain 60 per cent of the long distance call revenue, while cellular service providers have to pass on 95 per cent of theirs to dot. The interconnect agreement for fixed operators is based on the original licence, which allows them 60 per cent retention of revenue from long distance calls. Cellular, on the other hand, is designated to be a self-sustaining sector, even though an access charge regime would need to be evolved at some stage. The NTP '99 emphasises these as being two distinct services, with cable being the third.
Revenue sharing from long distance calls needs detailed economic analysis and review.
To permit cellular operators inter-circle connectivity would certainly fulfil the affordability and convergence criteria, but it could impact the attractiveness of NLDO for other potential investors. DoT has reduced STD tariffs but only for intra circle calls. The amount that the consumer has to pay for an inter circle STD call is much more than an intra circle call over the same or even a longer distance. This is an issue that consumer organisations need to take up. The regulator will have to watch this discriminatory tariff practice carefully.