The Telecom Regulatory Authority of India and representatives from the telecommunications industry have failed to reach an agreement on the implementation of the Carrier Access Codes.

The talks have remained inconclusive as long distance operators and access providers are divided over the funding of the new system.

This could push back the implementation of the CAC by at least six months. The system would have allowed consumers to choose a long distance operator based on the quality of its service and pricing.

During a meeting held on Friday, some operators also pressed for a review of the CAC. They said market dynamics had done away with the need for giving a choice to the consumer.

TRAI will continue its dialogue with industry representatives over the next few weeks.

TRAI has now asked the department of telecommunications (DoT) to publish its report on the implementation of the CAC. In the report, the DoT has estimated the total cost of setting up the system.

Industry sources said long distance operators and access providers hold divergent views on who should pay for migrating to the new system.

Long distance operators like Mahanagar Telephone Nigam Ltd and Bharat Sanchar Nigam Ltd said since nearly Rs 700 crore (Rs 7 billion) would be need to implement the CAC, either the government or the access providers would need to chip in with funds.

However, access providers (both basic and cellular) want the operators to make the entire investment.

BSNL also said even if the CAC was put in place, it would take another six months to implement the billing system required to differentiate between various operators.

Last year, TRAI had directed all operators to implement the CAC within 18 months.