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Trai Invites Eoi On Appointment Of A Firm / Agency For Review Of The Reporting System On Accounting Separation

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Telecom Regulatory Authority of India (TRAI) invites Expression of Interest for “Appointment of a Firm / Agency for Review of the Reporting System on Accounting Separation Regulation, 2004” from experienced Firms/Agencies in this field.

What is Accounting Separation?

Separation of overall revenue of an operator service-wise like SMS, Voice, VAS, Internet, Active & Passive Infrastructure sharing etc.,

Why it's needed by TRAI?

To analyse the sectoral growth by service-wise although license is universal.

To identify the non capital intensive more revenue generating services on which levy can be applied so that revenue to Govt. can be maximized without affecting growth.

To identify germinating cartels and make remedial measures

In earlier days, reporting to TRAI/DoT were based on overall revenue which leads to the situation where operators shifts their majority of their revenue to services which attracts less levy.

To avoid such reporting, TRAI has recommended to DoT for uniform fee across services but it's still awaiting the clearance from DoT.

Why TRAI wants to review the system now?

(1) Current system is decade old

(2) There have been tremendous growth from the time the current system was framed both in terms of subscriber-wise and service-wise

(3) Emerging complexity due to imminent convergence of broadcasting and telecommunication domains

(4) Emerging complexity due to imminent migration to NGN

(5) Tremendous growth in number of operators when Telecom operators, NLD operators, ILD operators, ISPs, Broadcasters, DTH operators, MSOs, Cable operators, DTH operators, IPTV operators treated together

(6)Ongoing Transition of financial reporting of Indian corporates from old Indian GAAP to IFRS.

(7) Sub-segmentation of original service providers' functions like Infrastructure Provision (initially passive and now active).

Almost all service providers have hived off their infrastructure business as separate unit.

TRAI has always strive hard to promote competition in any set of operators. But due to emergence of new sub-segments like infrastructure and so on, the anti-competitiveness has crept into new sub-segments.

What is the use of having 12 operators in a circle if they're sharing only 4-5 Infrastructure providers' passive and active elements?

Obviously those 4-5 Infrastructure Providers can control the entire industry's pricing.

What is the use of having 12 operators when only 1-2 mobile TV distributors (like Apalya) is available in the market?

Obviously those 1-2 distributors will control the cost of the service.

To take cognizance of above issues, TRAI feels that more services have to brought-in and some changes have to made in the current account separation methodology.

TRAI wants to get help from consultancy firm to achieve this task.

http://www.trai.gov.in/WriteReadData/trai/upload/Tenders/50/AdEOIASR10jan11Final.pdf

Edited by kesav

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Telecom Regulatory Authority of India (TRAI) had invited Expression of Interest (EOI) for “Appointment of Firms / Agencies for Review of the Reporting System on Accounting Separation Regulation, 2004” from experienced Firms/Agencies in this field vide its advertisement dated 11th January 2011. It is clarified that the interested firms/ agencies can also submit EOI in consortium with other firms/ agencies and should have a clear understanding of working together under a formal consortium agreement for the purpose. The group of firms/ agencies submitting EOI in consortium together should fulfill the Terms and Conditions of amended EOI. The firms/ agencies who have applied earlier need not resubmit their bids. However, they can submit any additional information in connection with their EOIs, if they so desire.

Detailed scope of work along with terms & conditions of the EOI are available on the TRAI’s website at http://www.trai.gov.in/TenderNotice.asp. The last date for submitting EOI is 20th May, 2011.

http://www.trai.gov.in/WriteReadData/trai/upload/Tenders/60/EOI-Revised_Terms_&_Conditions-ASR.pdf

Edited by kesav

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