The Telecom Regulatory Authority of India (TRAI) has recently released a Consultation Paper on Definition of International Traffic. This paper seeks to define the term ‘international traffic’ in the Indian context, thereby providing clarity and a uniform definition for all stakeholders in the telecom sector.
The TRAI, through a reference dated 30.08.2022, requested the Authority to provide its recommendations under Section 11(1)(a) of TRAI Act, 1997 (as amended) on definition of International SMS and Domestic SMS. In response to this, the Consultation Paper on Definition of International Traffic has been placed on TRAI’s website (www.trai.gov.in) seeking inputs from stakeholders. The deadline for submission of written comments is May 30, 2023, and counter-comments by June 13, 2023.
In this article, we will discuss in detail the key issues raised in the Consultation Paper, the implications of the proposed definition, and the potential impact on the telecom sector in India.
Understanding Telecommunication Traffic
Telecommunication traffic refers to the load carried on a telecommunication network. This traffic comprises several types such as voice calls, SMS, etc. Telecommunication traffic is further classified into domestic and international traffic. In India, domestic traffic includes intra-circle and inter-circle traffic, which have been defined in the Unified License Agreement. However, the term ‘international traffic’ has not been defined in the Agreement.
Issues Raised in the Consultation Paper
The Consultation Paper on Definition of International Traffic has raised several key issues. Firstly, it seeks to define the term ‘international traffic’. This definition will have implications for several other terms and regulations such as International Long Distance (ILD) services and International Mobile Roaming (IMR).
Secondly, the paper seeks to examine the definition of International SMS, which is a type of international traffic. The paper questions whether the current definition of International SMS is adequate and whether a separate definition for International SMS is required.
Thirdly, the paper examines the need for a uniform definition of ‘international traffic’ that can be used across all telecom licenses. This will ensure clarity and consistency in the interpretation of regulations related to international traffic.
Implications of the Proposed Definition
The proposed definition of ‘international traffic’ is likely to have significant implications for the telecom sector in India. Firstly, it will provide clarity and a uniform definition for all stakeholders in the sector. This will facilitate the interpretation and implementation of regulations related to international traffic.
Secondly, the proposed definition will have implications for ILD services and IMR. This is because the definition of ‘international traffic’ will be used in the calculation of revenue share for ILD services and the determination of rates for IMR.
Thirdly, the proposed definition will also have implications for International SMS. A separate definition for International SMS may be required, depending on the outcome of the consultation process.
Potential Impact on the Telecom Sector
The proposed definition of ‘international traffic’ is likely to have a significant impact on the telecom sector in India. Firstly, it will facilitate the growth of ILD services by providing clarity on the revenue share calculation. This will encourage new players to enter the market, leading to increased competition and better services for consumers.
Secondly, the proposed definition will also have implications for IMR. The determination of rates for IMR is currently a contentious issue, with operators and consumers often at odds. A uniform definition of ‘international traffic’ will help to resolve these issues and ensure a fair and transparent pricing mechanism for consumers.
Thirdly, the proposed definition will also impact the regulation of International SMS. This will ensure that there is a clear and uniform definition for this type of traffic, leading to better regulation
In this regard, a Consultation Paper on Definition of International Traffic seeking inputs from stakeholders has been placed on TRAI’s website (www.trai.gov.in). Written comments on the issues raised in the Consultation Paper are invited from the stakeholders by May 30, 2023 and counter-comments by June 13, 2023. The comments/counter-comments may be sent, preferably in electronic form at advmn@trai.gov.in.
