USTR asks for TRAI to allow full vetting of issues

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In a major movement, the United States has asked the Indian telecom watchdog, Telecom Regulatory Authority of India (TRAI) to allow full vetting of issues through public consultations so that it is able to determine whether or not RIOs (Reference Interconnection Offers) need to be updated or amended.

The report of the 1377 Review identifies barriers facing U.S. telecommunications service and equipment suppliers, and identifies specific telecommunications-related issues on which USTR will focus its monitoring and enforcement efforts this year.

Main concerns raised in the report

Issues Affecting Telecommunications Equipment Trade: The report discusses framework regulations imposed by China relating to information security; restrictions on encryption in India, as well as concerns regarding guidelines governing the importation of telecommunications network equipment in India.

The report also addresses general concerns with equipment standards and conformity assessment procedures (including testing requirements) imposed by Brazil, Costa Rica, China, India and Mexico.

Fixed and Mobile Call Termination Rates: The report again highlights concern that U.S trading partners are seeking ways to increase the rates U.S. telecommunications operators must pay in order to deliver long-distance calls into the foreign operators’ countries (the “termination rate”), resulting in higher costs for U.S. carriers and higher prices for U.S. consumers. This year’s report focuses on problems in Tonga, Ghana and Jamaica.

Issues with Access to Major Supplier Networks: The report highlights problems that competitive telecommunications carriers encounter in Chile, Germany, India and Mexico trying to lease parts of an incumbent operator’s network, or compete against the dominant satellite services company. This year’s report includes a detailed discussion on a broad range of issues our companies are facing in Mexico.

Issues Affecting Telecommunications Equipment Trade: The report discusses framework regulations imposed by China relating to information security; restrictions on encryption in India, as well as concerns regarding guidelines governing the importation of telecommunications network equipment in India. The report also addresses general concerns with equipment standards and conformity assessment procedures (including testing requirements) imposed by Brazil, Costa Rica, China, India and Mexico.

Problems with Licensing, Transparency and Regulatory Requirements: The report also discusses issues relating to licensing of Internet via satellite services and auctioning of mobile spectrum in Costa Rica, classification of value added services in China, and regulatory barriers to providing satellite services in China and India, as well as general problems with providing Voice over IP services in multiple jurisdictions.

Noting that India is currently exploring how it will implement the 2008 Amendments to the Information Act of 2000, the USTR said US companies are concerned that India will develop policies to implement the 2008 Amendments that will impose stringent and burdensome encryption requirements, including for equipment sold for solely commercial use, or even ban the use of certain encryption technologies.

“While India’s goal of effectively managing its national security concerns is important, India should ensure that its policies do not deviate from commonly accepted or best practices. To date, the United States and US industry have engaged in a constructive dialogue with India focused on best practices for managing security concerns while not unduly restricting industries’ ability to utilise encryption technology,” the report said.

The USTR will continue to engage India to seek ways to ensure US telecommunication companies can effectively protect information, while also respecting the security concerns of the Indian government, it said.