PTI

New Delhi, Feb 22: A further drop in long distance call rates is on the anvil with the Department of Telecom deciding to remove a major glitch in the introduction of Carrier Access Code, which would allow telecom subscribers to opt for a long distance operator of their choice.

In an effort to push this, DoT has decided to permit mutually negotiated sharing arrangement of cost for upgradation of interconnecting networks.

This decision is expected to kick-start the so far non-starter CAC, as the present licence agreement provides that the network resources including the cost of upgadation/modifying interconnecting networks to meet the requirements of the service will be undertaken by the operator seeking interconnection.

This was a major sore point as it was seen heavily tilted against the company seeking interconnection, whereas the benefit of this was to go to both sides (terminating provider also). The resistance of BSNL to CAC where it feared loss of customers and revenue on the basis of comeptition, also has delayed the process.

"Mutually negotiated sharing arrangements for cost of upgradation and modifying networks between services providers will be permitted," officials of DoT said.

About the CAC, the order was issued in 2002, but it did not happen since then. The CAC is a dialer code that allows users to access the network of a long distance service provider of their choice to make calls.

The regulator TRAI had also issued directions regarding the implementation of call by call and carrier pre-selection.

But this has so far not been enforced on private operators as BSNL itself had not come forward on this.

DoT was also aware that system modification in the switches of Access Providers is required to enable them to implement Carrier Selection for STD and ISD services in their networks and the set-up cost for this upgradation needs to contributed by STD/ISD operators. Since the upgradation cost was on the higher side, no STD/ISD operators came forward to contribute to the access providers.

In fact, when DoT lowered the revenue-share and entry fee of STD and ISD players in November last year to introduce competition, it was felt that without CAC, there is no meaning of competition in this segment.