India and the United Kingdom have formalised a significant step in telecom relations by signing a telecom-specific pact under the free trade agreement (FTA). This development, part of the broader India-UK telecom agreement, introduces non-discriminatory market access for each country’s telecom services—potentially paving the way for Indian telecom operators to expand into the UK market.
The deal, known as the Comprehensive Economic and Trade Agreement (CETA) in official terms, also includes mobile number portability across each other’s territories.
The agreement states: “Each party shall ensure that a service supplier of the other party is accorded access to and use of any public telecommunications network or service, including leased circuits, offered in its territory or across its borders on a timely basis and on reasonable, transparent and non-discriminatory terms and conditions.”
While UK-based Vodafone once operated extensively in India through 100 owned subsidiaries before merging with Idea Cellular, no Indian telecom operator has ventured into the UK telecom market so far. This India-UK FTA may reverse that trend and provide Indian companies with the regulatory certainty necessary to pursue UK-based opportunities.
The agreement also deals with factors like allotment of spectrum and interconnection rights to transborder service providers. It states, “Each party retains the right to establish and apply spectrum and frequency management policies which may affect the number of suppliers of public telecommunications networks or services, provided that it does so in a manner that is consistent with this agreement. Each party also retains the right to allocate frequency bands taking into account current and future needs and spectrum availability”
In addition, it permits radio frequency allocations through transparent processes. These allocations are intended to encourage public interest and propel a fair competition for players from both countries.
The India-UK FTA talks of allowing major operators to allow non-discriminatory access to their resources to operators from other markets the same way they would allow their subsidiaries.
The text stipulates: “Each party shall ensure that a major supplier in its territory accords suppliers of public telecommunications networks or services of the other party treatment no less favourable than major supplier accords in like circumstances to itself, its subsidiaries, its affiliates, or any non-affiliated supplier of public telecommunications networks or services regarding,” ensuring parity in operational access.