Trai for stopping building owners' exclusive pacts with telcos

To stop "restrictive practices" adopted by building owners who give preference to a particular telecom service provider, regulator Trai today recommended that exclusive contracts that prohibit access to other players be treated as "violation" of licence norms.

"Indulgence into exclusive contract prohibiting access to other Telecom Service Providers (TSPs) may be treated as violation of the licence agreement or registration," Trai said in its latest recommendations on 'In-Building Access by Telecom Service Providers'.

Trai has also suggested that TSPs and infrastructure providers be mandated to share in-building infrastructure (optical fibre and other cables, ducts) with other TSPs, in large public places, commercial complexes and residential complexes in "transparent, fair and non-discriminatory manner".

It said that generally "restrictive practices" adopted by building owners for giving TSPs access to their buildings based on commercial interests had forced its hand and necessitated the policy intervention.

"In many cases, these owners enter into exclusive agreement with one of the TSPs for providing telecom services to dwellers and deny access to other TSPs, thus creating an artificial entry barrier for other TSPs.

"Such practices not only limit competition, it also leaves no choice to consumers except to avail services from the TSP with whom the contract is done," Trai said justifying the need for bringing out specific recommendations in this regard.

It further said that suitable provisions for the creation of Common Telecom Infrastructure (CTI) inside the building should form part of the Model Building Bye-Laws.

"The essential requirement for telecom installations and the associated cabling should form part of National Building Code of India (NBC), being amended by Bureau of Indian Standards (BIS)," it said.

Completion certificate to a building should be granted only after ensuring that the CTI as per the prescribed standards, is in place.

Access to building including CTI facilities should be available to the TSPs on a "fair, transparent and non-discriminatory manner" and minimum three TSPs or infrastructure providers should have presence in the building.

To lay cables or install telecom infrastructure inside the building, TSP and infrastructure providers require permission of the owner of the building, and have to further pay a negotiated amount for the access to the premises.

"A need was felt for policy intervention and to evolve a framework applicable to in-building facilities to enable the telecom operators to obtain efficient access on reasonable terms and conditions," it said.