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Frequently Asked Questions

CUG - Closed User Group
A Closed User Group is a supplementary service offered by network operators. It allows the creation of logical groups of users within the operator's network.

The CUG supplementary service enables users to form groups to and from which access is restricted. A specific user may be a member of one or more closed user groups. Members of a specific Closed User Group can communicate among themselves but not, in general, with users outside the group.

The CUG supplementary service is applicable to all telecommunication services.

Closed user group service in a mobile communication system

A method and apparatus for providing closed user group service in a packet radio system, which includes at least one network and at least one group including a plurality of subscribers. The closed user group access conditions for at least one subscriber are determined in the network, the access conditions include at least one of the following conditions: right to communicate with parties outside the group, and right to communicate with at least one member of the group without communicating with all members of the group. The access conditions are checked when packets are being sent to/from the subscriber. The packets are transferred if the access conditions allow the transmission.

A closed user group (CUG) selection facility is a specific encoding element that can be presented in a call request or an incoming call. A CUG selection facility in a call request allows the source data terminal equipment (DTE) (e.g. mobile handset unit) to identify the CUG within which it is placing the call. A CUG selection facility in an incoming call allows the destination DTE to identify the CUG to which both DTEs belong .

CUG for mobile on (CellOne) post paid services for Corporate users customised CUG with other built in facility are also available .

  VPN Tariff for Corporate and Non-Corporate customers   :

Particulars Plan - 225 Plan - 299 Plan - 325 Plan - 525
Monthly Rental in Rs. 225 299 325 525
VPN size Fixed monthly VPN charges per DEL in Rs
3 to 25 75 50 50 0
26 to 999 50 50 25 0
>   999 25 25 0 25
Call charges within VPN (Rs/Minute) Free
Call charges outside VPN (Rs/Minute) As per respective plan
Other terms and conditions As per respective plan / Available in same LSA

              i)       CUG/VPN is also given in Plan-140 on monthly VPN charges of Rs. 100 / 75 / 50
                       for group size of 3-25, 26-999 and >999 respectively.
            ii)        CUG facility is available to the customers under Plan-725 with the same charges /
                       conditions applicable under Plan-525.
=========================================================================

TELECOM REGULATORY AUTHORITY OF INDIA
PRESS RELEASE No. 12 /2004
16th February, 2004
TRAI releases consultation paper on
CUG (Closed User Group) / Virtual Private Network (VPN) /
Friends & Family (F&F) Tariff Schemes


TRAI had released a consultation paper on "Application of principle of Non-discrimination in tariff schemes like CUG (Closed User Group), VPN (Virtual Private Network), F&F (Friends & Family) etc. on 16th February,2004.

The development of technologies, reduction in the cost of providing telecom services and escalation of competition in the market have all resulted in telecom service providers offering various innovative tariff schemes in the market.

It has come to the notice of the Authority that the tariff under some tariff schemes in the nomenclature of Closed User Group (CUG), Virtual Private Network (VPN) etc. has in-built features to provide free /concessional calls to CUG /VPN members when they make calls within
the group. This feature appears to infringe upon the principle of non-discrimination, which has repeatedly been enunciated by the Authority.

There is also a view that, tariff concessions applicable to CUG/VPN subscribers of one network cannot be extended to subscribers of another network by virtue of the definition of CUG/VPN. The concern of the Authority is whether such tariff plans, would amount to dilution of the
principle of non-discrimination emphasised by the Authority. Considering the fact that services such as CUG/VPN have been found to satisfy legitimate interests of various organizations in the past, it was felt necessary to issue a consultation paper to elicit the views of various
stakeholders.

Written comments are invited on this consultation paper latest by 5 th March, 2004 mainly on the issues mentioned below :
a.     Whether differential tariff for calls within the network should continue to be treated as
        discriminatory ?

b.    Whether CUG and VPN tariff Schemes should be disallowed as it involves differential call
       charges and thus, amounts to discrimination?

c.    Whether certain terms and conditions are to be prescribed by the Authority to ensure that
       these schemes are not misused?

If so, what would be the appropriate criteria to define aforesaid conditions?

For more details please visit TRAI's website at: www.trai.gov.in.

=========================================================================
Remarks on closed user group  :
    Regulatory bodies namely Reserve Bank of India(RBI) and Securities & Exchange Board of
      India(SEBI) can connect to any of these CUGs without extra charge provided they do not
      switch traffic among networks and furnish undertaking to this effect. In case of violation of
      the undertaking by them, interconnection fee shall be charged from the date of approval.
    Provided that ultimate consumer of the product or service shall not be a part of the closed
      user group and also that the network will be used purely for legitimate internal communica-
      tion purposes of the group where resale of telecommunication service and its profits are not
      involved. In respect of companies against 5 , 6 and 7 above, the definitions available in
      MRTP Act 1969 will be taken.
    In case of dedicated/captive networks for the use of closed user groups, the equipment
      shall be owned and operated by the licensee within the scope of license (as granted by the
      Government). Third party ownership and provision of service is not permitted.
    The character of the closed user group has to be maintained through out the period of
      validity of the permission granted.
   If a single party leased line network is given a leased line connectivity abroad to the principal/
      sister concern of the network hirer (any organization which comes under CUG category),
      such network is not to be treated as closed user group network for the purpose of charges
      or otherwise.
   The wholesale traders/agents of their interconnected companies may also be allowed to be
      connected with the CUG Network of the main hirer on the basis that these circuits for
      wholesale traders/agents of the inter connected companies will be charged rental of 25%
      extra for each such circuit connected to the CUG Network of the main hirer from the date of
      commissioning of such circuits.
   Private leased line networks were allowed to be connected with Inet/HVNet/RABMN. A single
      party leased line network is not to be treated as a CUG network by virtue of such inter-
      connection. There shall be no restriction on the type of persons accessing a private leased
      line network through Inet/HVNet/RABMN provided the network hirer is not selling telecom
      services from his network to any of such persons.