New Delhi, Jul 24 (PTI) India and the UK have signed a deal, as part of the free trade agreement (FTA), to allow non-discriminatory access of each other's market for telecom services -- a move that may pave the way for a potential expansion of services by Indian telecom operators in the United Kingdom.

The pact, officially called the Comprehensive Economic and Trade Agreement (CETA), has included provisions on mobile number portability in their territory as well.

"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," the agreement said.

UK's Vodafone had full-fledged operations in India with 100 owned subsidiaries before its merger with Idea Cellular. However, no Indian telecom operator has ever entered the UK market.

The telecom agreement between the two countries has provision for spectrum allocation, interconnection, etc, to the transborder service providers.

"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," the agreement said.

The agreement calls for radio spectrum allocation -- in an open and transparent process -- to players from other countries for public telecommunications services that is in public interest and promotes competition.

The agreement talks about allowing major telecom operators to ensure non-discriminatory access to its various resources to the operator from other markets in a manner it would have allowed access to its subsidiary.

"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," the agreement said. PTI PRS TRB

Non-discriminatory telecom market access enables reciprocal cross-border services and spectrum allocation under a bilateral FTA. The agreement requires non-discriminatory market access for cross-border public telecommunications services, obliging each party to allow service suppliers of the other party timely use of public telecommunications networks and services, including leased circuits, on reasonable, transparent and non-discriminatory terms. It preserves sovereign spectrum and frequency management rights but conditions allocation on an open, transparent process promoting competition, and requires major suppliers to treat foreign-party suppliers no less favourably than their own affiliates or non-affiliated suppliers in like circumstances.