DoT Paves Way for Internet-based Networks With New Amendment

With the amendment telecom players cannot deny interconnection to other telecom operator having IP-based network.

Published: 22nd April 2016 06:53 PM  |   Last Updated: 22nd April 2016 06:53 PM   |  A+A-


NEW DELHI: In a boost to telecom operators providing Internet protocol-based services such as 4G, the Department of Telecom has allowed interconnection among such networks of service providers.

The Department of Telecom has amended the Unified Access Service (UAS) licence agreement, inserting a provision for Internet protocol to allow interconnection of IP-based networks.

"Interconnection between the networks of different licences for carrying circuit switched traffic shall be as per national standards ... and for carrying IP-based traffic as per Telecom Engineering Centre standards as amended from time to time by TEC and also subject to technical feasibility..." says the amendment.

The Cellular Operators Association of India (COAI) said with the amendment telecom players cannot deny interconnection to other telecom operator having IP-based network.

"All operators have their core networks built on IP. With this provision coming in place, now telecom operators cannot deny interconnection to other telecom operator having IP-based network," COAI Director General Rajan S Mathews said.

Earlier networks were built using copper cables, called circuit switch, but modern networks are being built mostly using optical fiber.

A telecom licence had provision of connecting circuit switch based networks with another circuit switch, circuit switch with IP but not IP to IP.

The amendment was required to enable interconnection among upcoming networks which will be based on IP starting with 4G technology.

Telecom operators are also moving towards IP-based network as these have low capital and operating cost as well as more efficient than old circuit-switch based networks.

COAI also said that telecom operators will now have to mutually decide on interconnection usage charges (IUC).

The IUC is fixed by the regulator Trai, which is also looking into interconnection charges for Internet-based networks such as 4G. IUC is paid by one telecom operator to another to connect its subscriber's call or message to the latter's network.

When asked if a telecom operator denies to pay IUC charge demanded by other, Mathews said that ultimately it will go before Trai which will take a call on the issue.

Incumbent telecom operators who still have circuit switch networks are of the view that IUC should be levied on voice calls made through IP networks.

IUC on voice calls made from IP-based networks can escalate cost of Internet-based voice calls, known as Voice Over Internet Protocol (VoIP).

Stay up to date on all the latest Business news with The New Indian Express App. Download now


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp