BUSINESS

TRAI to announce basic telecom tariff on Saturday

Source:PTI
January 24, 2003 16:36 IST

The Telecom Regulatory Authority of India will announce on Saturday the revised basic telecom tariffs, including monthly rentals, call charges and the much-awaited interconnection charge.

At present, the basic telecom tariffs are subsidised.

The monthly rental varies between Rs 70 to Rs 250 depending upon the areas and capacity of telephone exchange, while the call charges are Rs 1.20 for three minutes.

Customers get 75 free calls in a month. The basic telecom players, both state-owned and private, have been demanding an upward revision in tariffs, especially because of a significant reduction in the long-distance call charges which were used for part recovery of cost in basic services.

TRAI's review process follows four months of intense consultations with stake holders, including industry, consumer organisations, investors and analysts.

The regulator held various open houses in all metros, besides other major cities.

The revised tariffs will come after a fortnight long stand-off between cellular and basic telecom operators over the issue of interconnection charge.

The cellular operators have been demanding reciprocal interconnection charge which their subscribers have been made to pay for making a call on fixed line phone.

The cellular subscribers pay Rs 1.20 over and above the airtime for call to fixed-line phones as well WLL-based limited mobile phones.

The basic operators have been saying that cellular operators retain the entire airtime with them, whereas the basic players operate below cost in view of offering services in the non-profitable rural areas.

TRAI chairman M S Verma, earlier this week, had lambasted the cellular operators for adopting pressure tactics on the regulator at a crucial time when TRAI was reviewing the basic tariffs and working out new access charges.

Verma had said that the regulator would be influenced only by one lobby and that is consumers' interest and for the betterment of overall industry.

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Source: PTI
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