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VSNL cuts accounting rates against US carriers

The cut in accounting rates is expected to come in effect from March.

Department of Telecommunications officials say that the decision was taken after the recently concluded meeting of the International Telecom Union Study Group in Geneva. India had participated.

T O D A Y

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The country will decide on the course of reduction in a phased manner only after ITU submits its report on the controversial issue, the officials claimed. At present, the ITU is studying various aspects of the issue.

This is the second substantive reduction in accounting rates by India vis-à-vis the US carriers.

In the first significant cut, rates were brought down to $1.60 per minute from $1.80 per minute. Subsequently, the accounting rates were further reduced to $1.58.

The reduction in accounting rates is the culmination of a series of discussions between the United States carriers and DoT.

The talks gained further impetus after the United States regulator, the Federal Communications Commission, decided to throw its weight behind US carriers last year and demanded that accounting rates be the same as the actual cost of carrying the calls.

In this regard, the FCC had set 46 cents per minute for international calls as the benchmark, which carriers across the world are required to achieve by 2002.

Affirming that the move to bring down accounting rates is in response to the general trend in the world, the DoT officials, however, said that the government is in no mood to bring the accounting rates down to the level demanded by the FCC.

Earlier:

• Call termination fee may replace settlement rates system
• India sues FCC
• US companies promised lower telecom accounting rates
• India wants telecom revenue-sharing ratio altered

- Compiled from the Indian media

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