VSNL trips on unreported ILD calls

One out of every three international long distance (ILD) calls terminating in India is going unreported, causing huge revenue losses to telecom players such as the Videsh Sanchar Nigam Ltd (VSNL).

According to an estimate, terminating charges are being evaded on about one billion minute call every year by a section of unscrupulous telecom operators, said S K Gupta, managing director of VSNL, in Kolkata on Friday.

He demanded the abolition of access deficit charges (ADC) which would reduce ILD rates and as a consequence the market for smuggled calls dry up.

"Either the Telecom Regulatory Authority of India (TRAI) has to effectively implement the ADC or scrap it. At present it is only helping those smugglers and hurting all legitimate players who want to do clean business," Gupta said.

He claimed a number of offers have been made to VSNL to under report incoming ILD calls but the company had turned those offers down. These operators then colluded with some other player who accepted under-reporting.

The gray market had been prevalent for last few years even though the ADC was introduced last year. However, ILD rates were very high earlier which helped in mushrooming such 'services'.

At present, the ADC portion, about Rs 4.35 per call in ILD is keeping the rates high.

ADC is what the basic telecom operators get to maintain the rural telephony. It is charged on all calls, local, national long distance and ILD. State owned Bharat Sanchar Nigam Ltd (BSNL) is the biggest beneficiary of the fund collected under ADC.

Gupta, who was in Kolkata to attend the Telecom East, a seminar organised by the Confederation of Indian Industry eastern region, noted fresh legislation might not help curb the fraud and it was better that TRAI should think of some other method.

TRAI flayed for CAC failure

VSNL managing director S K Gupta lashed out on TRAI for non-implementing carrier access code (CAC) which was preventing customers to choose national long distance (NLD) operators of their choice.

"Only those basic operators who already have a large customer base will be benefited. A large portion of the market remains inaccessible for new NLD entrants," he said.

The reason cited for non-implementing the CAC is the existing basic telephone exchanges are to be upgraded for allowing CAC facility.

Gupta claimed more than 50 per cent of the exchanges were CAC compliant and should be thrown open for consumers.