Trai bars VSNL from selling Indicom cards

The Telecom Regulatory Authority of India (Trai) today directed Videsh Sanchar Nigam Ltd (VSNL) to stop the sale of its range of Tata Indicom outbound prepaid calling cards.

The regulator has asked VSNL to send a compliance report by Thursday. VSNL being a national and international long distance operator cannot offer their above said services directly to subscribers, the regulator said adding, only access providers, that is, basic service, cellular service and unified service providers, can offer their services directly to their subscribers.

The Trai had sent a showcause notice to VSNL on February 22, to which VSNL had furnished its reply on March 7. The regulator said it found VSNL's reply to various points in the notice unsatisfactory.

The calls using these cards were being made from Tata Teleservices fixed and mobile services.

The regulator said the originating access provider Tata Teleservices would not be able to provide the called party number to security agencies, complying with the government norms, as the national long distance traffic was carried by VSNL.

The regulator said VSNL was taking advantage of the financial relief package, provided by the government in the form of exemption from paying licence fee as an NLDO.

The sale of calling cards service includes various components, whereas an NLDO is entitled for only carriage charges, which are regulated by Trai, the licence fee is calculated as a percentage of adjusted gross revenue, which in case of NLDOs, is derived only from the revenue in respect of carriage charges.