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Tariff Approval Guidelines
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Interconnection
Guidelines
|| Licensing Procedure
Guidelines for Interconnection
Part I:
General Interconnection Principles
Part II:
Interconnection Negotiations
Part III:
Reference Interconnection Offer
Part IV: Register of Interconnection Agreements and Determinations
Part V: Technical Matters
Part VI:
Promotion of customer interests
Part VII:
Protection of Information
Part VIII: Dispute
Resolution
Nepal Telecommuniction Authority
(NTA)
Interconnection Guideline, 2065
(2008)
Document No. GI065.01
Effective from May 1st,
2008 (Baishakh 19, 2065)
Part I:
General Interconnection Principles
1. Introduction
This Interconnection Guideline (GI) sets out the policy objectives for
interconnection of facilities and services between Licensees within the
telecommunications sector in Nepal pursuant to Section 52 of the
Telecommunications Act, 2053 (1997).
This
Guideline is intended to:
a.
encourage the orderly development of Telecommunications Systems
and Telecommunications Networks that enhances and strengthens the social
and economic welfare of Nepal;
b.
promote and maintain any-to-any connectivity and safeguard
against any abuse of market power in the provisioning of
Telecommunications Services in Nepal;
c.
prevent and abolish discrimination in the provision of
Telecommunications Services in Nepal;
d.
promote and maintain co-operation and fair competition between
Licensees in the telecommunications sector in Nepal; and
e.
safeguard the interests of consumers by ensuring that
Telecommunications Services are reasonably accessible to all citizens of
Nepal.
This Guideline
is not intended to:
(a)
limit the matters which may be dealt within an Interconnection
Agreement but to provide a minimum set of issues which should be
addressed; and
(b)
prevent or delay the Licensees from negotiating or entering into
bilateral or multilateral agreements which deal with matters other than
those addressed in this Guideline.
This Guideline shall apply to the interconnection of
facilities and services between Licensees providing Telecommunications
Services in Nepal.
2. Background
The Government of Nepal
recognizes that efficient and effective telecommunications networks and
services are an essential prerequisite for the continued growth of the
Nepalese economy. Telecommunications is also an important public utility
for the community. For these reasons, the Government must ensure the
commercial activities within the sector are aligned with, and support,
national development objectives and priorities. As more and more
participants become involved in the sector, a broad regulatory framework
needs to be established to govern the operations of the industry in the
interest of consumers, fair competition, and the achievement of national
goals.
3. Introduction of Competition
3.1 NTA has already issued licenses to NDCL for the provision of Basic
Telephone Service and Mobile Telephone Service in Nepal. Furthermore,
NTA has issued one license each for the provision of Basic Telephone
Service based on WLL and Cellular Mobile Telephone Service. Apart from
the national operator, there is one operator who is providing Rural
Telephone Service. And NTA is planning to issue one license each for the
provision of Second Rural Telephone service provider and Basic Telephone
Service provider.
3.2 In overseeing the implementation of this new competitive regime,
the NTA is responsible for maintaining fair competition between network
operators, whilst safeguarding the interests of consumers and ensuring
that all network operators contribute to universal service objectives
and the rapid expansion of telecommunications infrastructure throughout
the country. In carrying out this role, the NTA must balance conflicting
pressures and interests in order to ensure that the sector delivers the
greatest possible benefits for the country.
3.3 The Government's competition policy in Telecommunications Sector,
therefore, exposes the sector to market disciplines, whilst implementing
safeguards to ensure that healthy competition and national policy
priorities are achieved.
3.4 From a national perspective, the Government looks to the entry of
new operators and the emergence of a competitive market to deliver
substantial benefits including the rapid expansion of service available
and the elimination of unsatisfied demand, through increasing the total
level of capital investment in the sector.
3.5 Interconnection between telecommunications networks to provide
connectivity between any-to-any and safeguards against any abuse of
market power, are fundamental concepts of competition.
4. 4. Duty to interconnect with other Licensees
4.1 Every Licensee has a duty to provide access to and
interconnect with another Licensee on fair and reasonable terms and
conditions.
4.2 In providing interconnection, the Licensees shall
have regard to the following principles:
a. the Licensees shall contribute towards the
achievement of the national objectives of extending the availability and
usage of Telecommunications Services and the provision of quality
services;
b. the Licensees shall deploy high quality and
advanced telecommunications infrastructure to serve the diverse needs of
different customer groups;
c. the deployment and usage of the
telecommunications sector’s infrastructure and resources should be
directed towards the development of an economically efficient
telecommunications industry, minimize uneconomic duplication of
infrastructure facilities and encourage the shared usage of common
infrastructure facilities; and
d. The interconnection arrangements between the
Licensees shall be based on the principles of symmetrical arrangements,
transparency and reciprocity as between the Licensees.
5. Principles of non-discrimination
5.1 Interconnection between the Licensees shall be:
-
a.
of at least the same technical standard and quality as the
technical standard and quality provided on the Licensees’ own
facilities and services; and
-
b.
on an equitable and non-discriminatory basis.
5.2 For the purpose of this Guideline, the term
‘non-discriminatory’ requires comparison of:
-
a.
the basis on which a thing is provided by one Licensee to
another Licensee; with
-
b.
the basis on which that thing is provided by one Licensee to
itself and to other Licensee who are similarly situated.
6. Charging Principles
6.1 Each Licensee shall be required to make available its
Telecommunications Network and Telecommunications Services to any other
Licensees wishing to interconnect on an appropriate basis.
6.2 The charges that a Licensee offers for all
Interconnection Services must be cost-based and reflect the fact that
relationship between Licensees is a carrier-to-carrier relationship.
This generally involves the provision of services which are not
available to customers or to unlicensed third parties.
6.3 Where feasible, the Licensees must use an established
cost methodology.
6.4 In negotiating Interconnection Agreements or
developing a Reference Interconnection Offer, the Licensees shall take
into consideration the following charging principles:
-
a.
any charges or rates imposed shall be such that they cover
the costs attributable for providing Interconnection incurred by the
Licensee to whom the charges are payable;
-
b.
calculations of Access Charges shall be based on the costs
attributable to the interconnection and shall include the cost of
capital employed in the assets used;
-
c.
the charges or rates imposed shall take into account the need
for a Licensee to earn a reasonable rate of return on investment.
-
d.
the charges or rates imposed shall take into account the
universal service obligations of the Licensees being connected to
(unless other explicit mechanisms are put in place);
-
e.
where Telecommunications Services generate usage-sensitive
costs, the charges shall be usage sensitive; and
-
f.
the charges will be based on efficient provisioning standards
and internationally acceptable practices.
TOP
Part II:
Interconnection Negotiations
7. Options for Entering into Interconnection Agreement
7.1 A Licensee that seeks to interconnect with another
Licensee may:
-
a.
negotiate and establish in good faith, with another Licensee,
an Interconnection Agreement; or
-
b.
enter into an Interconnection Agreement with another Licensee
by accepting another Licensee’s Reference Interconnection Offer.
8. Interconnection Procedures
8.1 Where a Licensee wishes to negotiate and establish an
Interconnection Agreement with another Licensee pursuant to Section 7.1
a, the Licensee must comply with the following procedures:
-
a.
submit a written request to the other Licensee copied to the
Authority to negotiate an Interconnection Agreement
(“Interconnection Request”);
-
b.
enter into a confidentiality agreement within seven (7) days
of receipt of the Interconnection Request by the other Licensee;
-
c.
begin negotiations within seven (7) days after the execution
of confidentiality agreement; and
-
d.
subject to sub-section c above, conclude and execute the
Interconnection agreement within three (3) months from the date of
the Interconnection Request (“Negotiation Period”).
8.2 For the purpose of Section 8.1 a, the Interconnection
Request must:
a.
contain the name and contact details of the Licensee requesting
interconnection;
b.
specify the type of interconnection required including inter alia:
-
i.
information on network configuration;
-
ii.
proposed POIs;
-
iii.
proposed interfaces;
-
iv.
capacity requirements;
-
v.
proposed traffic routing;
-
vi.
traffic forecasts;
-
vii.
traffic types;
-
viii.
proposed implementation schedules not earlier than six (6)
months from the date of the Interconnection Requests; and
-
ix.
details of initial and further network operations relevant to
the interconnection requirements.
8.3 The Interconnection Request must be accompanied by
the Bank Guarantee equivalent to the annual subscription fee of the
requested no of E1 calculated as per Section 16.3 (i) of this Guideline.
The Bank Guarantee shall be released immediately after providing E1 or
within 3 months from the date of Interconnection Request, whichever is
earlier.
8.4 In the event that the Licensees fail to conclude an
Interconnection Agreement within the Negotiation Period, either Licensee
may:
-
a.
make a written request to the Authority to extend the
Negotiation Period; or
-
b.
make a written request for the Authority to determine an
Interconnection Agreement between the Licensees in accordance with
this Guideline. Such determination by the Authority shall be made in
accordance with Section 16 of this Guideline.
8.5 The determination made by the Authority pursuant to
Section 8.4 b shall be legally binding on the relevant Licensees.
9. Exchange of interconnection traffic without Interconnection
Agreement
-
9.1 Any exchange of traffic between the Licensees prior to the
conclusion of an Interconnection Agreement pursuant to Section 8
shall be subject to suitable billing mechanisms being put in place,
and agreement being reached with regard to the keeping of records by
the Licensees concerned.
-
9.2 Where the Interconnection agreement is concluded pursuant to
Section 8 above, the Licensees shall effect payments in accordance
with the Interconnection Agreement for the Interim Arrangement
unless otherwise agreed by both Licensees.
10. Interconnection Agreements
-
10.1 An Interconnection Agreement should enable Licensees to provide
Telecommunications Services to their respective customers and the
customer of other Licensees.
-
10.2 An Interconnection Agreement shall cover at least the following
matters:
-
a.
scope and definition of Telecommunications Services including
transit services (if offered);
-
b.
interconnection and POI requirements and principles;
-
c.
provision of information including notice of changes in the
configuration of its network, numbering, routing and signalling;
-
d.
interconnection provisioning procedures and cost of
interconnection;
-
e.
network and transmission capacity requirements;
-
f.
technical service level commitments;
-
g.
technical specifications and standards;
-
h.
transmission and performance standards;
-
i.
fault reporting and resolution procedures
-
j.
network management, maintenance and measurement, including
traffic record on incoming and outgoing call communications;
-
k.
network safety, protection and related matters;
-
l.
call handling and operations procedures;
-
m.
access to interconnection facilities and sharing of
infrastructure;
-
n.
charging mechanisms, billing and settlement procedures;
-
o.
transmission of calling line identification information;
-
p.
operator assisted services, directory information and
assistance;
-
q.
commercial terms and conditions;
-
r.
the universal service contribution of Licensees (if
required);
-
s.
network numbering;
-
t.
confidentiality of information;
-
u.
liability and indemnities;
-
v.
force majeure;
-
w.
intellectual property rights;
-
x.
provision for an interconnection agreement liaison committee;
and
-
y.
review periods and terms for review.
10.3 Each Interconnection Agreement shall incorporate:
-
a.
a technical and implementations manual;
-
b.
an operations and maintenance manual;
-
c.
a provision committing each Licensee to the Dispute
Resolution Procedures; and
-
d.
any other necessary manuals to facilitate the implementation
of the provisions of the Interconnection Agreement.
11. Renegotiation of Interconnection Agreements
-
11.1 Subject to Section 11.2 below, any Licensee may at any time
after the Interconnection Agreement comes into force, request in
writing and agree to negotiate in good faith any proposal to
replace, revise or amend the Interconnection Agreement in accordance
with this Guideline and the review provisions of the Interconnection
Agreement.
-
11.2 The terms and conditions of the current Interconnection
Agreement shall remain in force and effect during any negotiations
until commencement of the replaced, revised or amended
Interconnection Agreement.
-
11.3 If the Licensees fail to reach an agreement on any such
proposal pursuant to Section 11.1 above within one month, either
Licensee may make a written request to the Authority to make a
determination on any proposal necessary to give effect to a workable
and equitable Interconnection Agreement in accordance with
Section16.
12. Existing interconnection agreements and arrangements
-
12.1 Any Interconnection Agreement or arrangement related to
interconnection issues (including a Memorandum of Understanding)
entered into between the Licensees before this Guideline shall be
enforceable unless in contradiction to this guideline .
-
12.2 However, the Licensees shall renegotiate such agreements and
arrangements to ensure that the agreements and arrangements comply
with this Guideline.
-
12.3 Where the Licensees renegotiate the existing Interconnection
Agreements or arrangements:
-
a.
the Licensees shall use their best endeavours to conclude the
revised Interconnection Agreement or arrangement within ninety (90)
days from the date of coming into force of this Guideline (“Revision
Period”);
-
b.
if renegotiations are not complete within the Revision Period,
either Licensee may:
-
i.
make a written request to the Authority to extend the
Revision Period; or
-
ii.
make a written request for the Authority to determine a
revised Interconnection Agreement (or part thereof) between the
Licensees in accordance with this Guideline.
-
c.
The determination made by the Authority pursuant to Section 12.3 b.
ii above shall be legally binding on the relevant Licensees.
-
12.4 Where it becomes necessary for the Authority to determine a
revised Interconnection Agreement (or part thereof) between the
Licensees, the Authority will have regard to the matters set out in
Section 16 of this Guideline.
-
12.5Any exchange of traffic between the Licensees during the period
of renegotiation of a revised interconnection agreement shall be
subject to suitable metering and charging mechanisms being put in
place, and agreement being reached with regard to the keeping of
records by the Licensees concerned (“Interim Arrangement”).
-
12.6 Where the Interconnection agreement is revised and concluded
pursuant to Section 12.3 above, the Licensees shall effect payments
in accordance with the revised Interconnection Agreement for the
Interim Arrangement unless otherwise agreed by both Licensees.
-
TOP
Part III: Reference
Interconnection Offer
13. Duty to Develop a Reference Interconnection Offer
-
13.1 Each Licensee is required to develop a Reference
Interconnection Offer, setting out the terms and conditions for
interconnection of its Telecommunications Networks and
Telecommunications Services.
-
13.2 The Reference Interconnection Offer must be submitted to the
Authority for approval within one hundred and twenty (120) days from
the effective date of this Guideline.
14. Contents of the Reference Interconnection Offer
- The Reference
Interconnection Offer shall:
-
a.
be in writing (including legible electronic format);
-
b.be accurate;
-
c.
be organised in a logical and consistent manner
-
d.
be modular, allowing the Licensee to purchase only those
Interconnection Services that it wishes to obtain;
-
e.
be consistent with:
-
i.
the Act; and
-
ii.
the Regulations;
-
f.
as a minimum, cover the matters set out in Section 10 of this
Guideline;
-
g.
be sufficiently detailed such that another Licensee is able
to accept the prices, terms and conditions to obtain Interconnection
Services without having to engage in negotiations with the Licensee;
and
-
h.
be made available to a Licensee on request in paper form at
the Licensee’s principal place of business and on a publicly
accessible website.
-
TOP
Part IV: Register of Interconnection Agreements and Determinations
15. Lodgement of all Interconnection Agreements to Authority
-
15.1 The Licensees must lodge with the Authority a copy of all
Interconnection Agreements into which they enter within seven (7)
days from the date of execution of the Interconnection Agreements.
-
15.2 Upon lodgement, the Interconnection Agreements only becomes
effective and are enforceable in law after the Authority approves in
writing the terms and conditions of Interconnection Agreement.
-
15.3 Within thirty (30) days from lodgement of the Interconnection
agreement in accordance with Section 15.2, the Authority shall:
-
a.
approve the Interconnection Agreement with or without
amendment ; or
-
b.
reject the Interconnection Agreement and direct the Licensee
to file a revised Interconnection Agreement.
-
15.4 Where the Authority rejects the Interconnection Agreement
pursuant to Section 15.3 b, the Authority shall state the reasons
for its rejection.
-
15.5 The Interconnection Agreements approved pursuant to Section
15.3 shall be kept in a register of Interconnection Agreements which
shall be maintained by the Authority.
16. Determinations by the Authority
16.1 Any determination by the Authority under this Guideline shall to
the extent possible:
-
a.
be taken only after Licensees have had any opportunity to
come to a commercial agreement;
-
b.
take into account of international best practices and lessons
from relevant experiences;
-
c.
involve consultation with the relevant parties;
-
d.
avoid distorting industry economics;
-
e.
discourage uncommercial or anti-competitive behaviour; and
-
f.
take account of operational realities and the objectives
detailed in the Act.
16.2 In determining the terms and conditions of an
Interconnection Agreement, the Authority shall have regard to:
-
a.
the Act;
-
b.
submissions made to the Authority by the involved parties
(who shall be given at least fourteen (14) days to prepare such
submissions);
-
c.
the Authority’s objectives in the Act including but not
limited improving the competitive scenario;
-
d.
The rights and obligations of the Licensees in terms of their
Licences;
-
e.
The promotion of economic and technical efficiency;
-
f.
The interests of consumers and the public interest;
-
g.
The overall reasonableness and stated requirement of each
Licensee including but not limited to its justification of charges
in terms of costs for Interconnection Services.
16.3 While determining the terms and conditions of an
Interconnection pursuant to Section 8.4 b of this Guideline, the
following Interconnection Usage Charge (IUC) shall be fixed by the
Authority.
i.
Port Charge: It is the charge payable by the Interconnection
Seeker to the Interconnection Provider.
|
Port charges on pro rata
basis (Rs) |
|
Charge / year |
|
N* 35,000, where N is no of E1. |
ii.
Transmission Lease Charge for STM-4: Rs. 6, 00,000 per year
per kilometer on pro-rata per E1 basis.
iii.
Set Up Charge: Rs 200,000/per location
iv.
Interconnection Usage Charge
a. National Call:
|
Area |
Operator A |
Operator B |
Operator A Pays per minute to
|
|
Operator B (Terminal) Paisa |
Operator C For Carriage Charge Paisa |
|
Cat. A |
Cat. B |
Intra-zonal |
Inter-zonal |
|
Local Charge Area
(Intra-District Calls or
Same Numbering Areas) |
FS |
FS |
14 |
0 |
|
|
FS |
MS |
54 |
0 |
|
|
FS |
LMS |
34 |
0 |
|
|
LMS |
LMS |
34 |
0 |
0 |
|
LMS |
FS |
14 |
0 |
0 |
|
LMS |
MS |
54 |
|
|
|
MS |
LMS |
34 |
|
|
|
MS |
MS |
54 |
|
|
|
MS |
FS |
14 |
|
|
|
Different Charging Area
(Intra Zonal and Inter Zonal Calls, i.e. different
numbering areas) |
FS |
FS |
14 |
32 |
48 |
50 |
|
FS |
MS |
54 |
0 |
0 |
|
FS |
LMS |
34 |
48 |
50 |
|
LMS |
LMS |
34 |
48 |
50 |
|
LMS |
FS |
14 |
32 |
48 |
50 |
|
LMS |
MS |
54 |
0 |
0 |
|
MS |
LMS |
34 |
48 |
50 |
|
MS |
MS |
54 |
0 |
0 |
|
MS |
FS |
14 |
32 |
48 |
50 |
b. International
Incoming:
1.
International termination up to PoI (for circuit switch): NRs. 1.80 per
minute.
Outgoing: The
international gateway operator will receive 75% of the retail tariff.
v. Short Message
Service: NRs. 0.27 per SMS.
- Legend:
- FS:
Fixed Subscriber
- LMS:
Subscriber with Local Mobility
- MS:
Mobile Subscriber
- Cat. A:
Calls terminated in Kathmandu Valley (Area Code 01), Morang (Area
Code 021), Kaski (Area Code 061) and Parsa (Area Code 051)
districts.
- Cat B:
Calls terminated in other districts apart from mentioned in Cat. A.
16.4
The operators may fix their own mutually agreed Interconnection Charges.
However, the Interconnections Charges shall not exceed the rates
mentioned in Section 16.3 of this Guideline.
TOP
Part V: Technical Matters
17. Technical considerations
17.1 A Licensee who interconnects with other Licensees
shall take reasonable measures to ensure that the interconnection does
not cause physical or technical harm to the other Licensees’
Telecommunications Systems and Telecommunications Networks.
17.2 In negotiating Interconnection Agreements, the
Licensees shall take into consideration the following technical matters:
-
a.
ensure compliance with international standards and
recommendations where feasible;
-
b.
ensure the offering of technical and operational
interconnection facilities on the basis of suitably unbundled system
components, in accordance with general practice in the industry;
-
c.
ensure that the Licensees’ switching and transmission
facilities have the capacity to interconnect with other
Telecommunications Systems and Telecommunications Networks;
-
d.
ensure the preservation of network integrity and network
security;
-
e.
consider the reasonableness of lead times for network
provisioning;
-
f.
comply with the provisions and requirements of the national
numbering plan;
-
g.
allow for differences in the interconnecting
Telecommunications Systems and Telecommunications Networks;
-
h.
apply good engineering principles and practices; and
-
i.
ensure timely and efficient deployment of sufficient numbers
and capacity of links to support the required grade of service for
customers.
18. Infrastructure Sharing
-
18.1 A Licensee who controls Telecommunications Systems and
Telecommunications Networks used to support the provision of
Telecommunications Services shall allow other Licensees to jointly
use the same Telecommunications Systems and Telecommunications
Networks, at cost based prices and on non-discriminatory terms and
conditions to be mutually agreed by the Licensees involved, provided
it has the capacity to do so.
-
18.2 A Licensee may include as part of the Interconnection Agreement
access to and shared use of physical space at the premises and
facilities of the Licensees including but not limited to buildings,
land, ducts, pipelines, equipment, installations and wires.
19. Point of Interconnection
-
19.1 The Licensees shall mutually agree on the Points of
Interconnection (‘POIs’) including the number and physical
locations. Until agreed in writing by the Authority, such POIs shall
be located at least at the trunk or tandem exchanges in the Regional
Offices of the Licensee.
-
19.2 The Licensees shall ensure that sufficient POIs are established
to enable agreed diversity of routing for interconnected domestic
and international traffic.
-
19.3 In the event that no agreement is reached between the Licensees
pursuant to Section 19.1 above, the Authority shall determine the
number of their physical locations in consultation with the
Licensees.
-
TOP
Part VI: Promotion
of customer interests
20. Interest of customers
20.1 In negotiating Interconnection Agreements, the
Licensees shall take into consideration the interests of the
telecommunications users including:
-
a.
involve the least possible cost to the customer to ensure the
provision of affordable Telecommunications Services;
-
b.
support improved access for currently under-provided
communities in Nepal, pursuant to the objective of universal access
to Telecommunications Services;
-
c.
be made in the interest of rapid and effective supply of the
Telecommunications Services;
-
d.
enable any customer to communicate with any other customer on
a seamless and transparent basis (the any-to-any principle);
-
e.
ensure the availability of the widest possible range of
Telecommunications Services at the lowest possible prices;
-
f.
ensure the protection of customer’s privacy and the
confidentiality of customer information; and
-
g.
enable the customers to choose their preferred Licensee of
network access for Telecommunications Services without artificial or
anti-competitive constraint limiting their choices.
21. Customer relationship principles
21.1 In relation to a customer:
-
a.
a customer will be regarded as a customer of a Licensee when
the customer utilised a Telecommunications Service provided to that
customer by the Licensee;
-
b.
the same person may be a customer of more than one Licensee
-
i.
in respect of the same or different Telecommunications
Services provided b
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