Facing severe criticism from various political parties including the allies of the ruling National Democratic Alliance for raising basic telecom tariffs, the telecom regulator announced on Saturday a review of the Inter-connect User Charge regime, while permitting operators to implement tariff packages after a "self-check".
The review of IUC may have far reaching implications on the tariffs, which have been implemented from May 1, including cellular phones 'calling-party-pays' principle.
TRAI said the period of self check would initially be for 1-3 months.
"In view of the fact that the IUC regime would itself be the subject of review and the large number of tariff packages that require examination, the authority has decided that it would allow longer period to service providers to implement tariffs after conducting a self-check regarding the consistency of those tariffs with relevant regulatory principles," Trai said in a statement.
Earlier, for the month of May, the Telecom Regulatory Authority of India had given the operators a self-assessment power for implementing their packages and had said that tariff packages after May 31 would require the prior approval of Trai.
According to sources, with the implementation of new regime from May 1 the field was tilted against the basic telecom operators as cellular and WLL services had become cheaper as compared to basic services.
Trai noted that the authority has already approved a large number of tariffs for basic services, and hence the self-check flexibility is applicable to cellular and WLL service providers.
Meanwhile, Trai will begin the process of IUC review through a consultation process and a final draft of this would be issued by May 15.
"The authority would also look at the desirability of withdrawing forbearance that is presently given to the tariffs for cellular mobile and WLL mobility."
Trai will also examine the number of tariff plans that should be allowed for each service provider. At present each service provider is allowed to offer a maximum of up to 25 packages.
Trai has asked the service providers to give clear indication of actual amount paid by the subscribers for calls made within the free call allowance and outside it.
"Generally in a number of tariff packages with lumpsum payments in addition to call charges, the actual amount of call charge is more than the amounts specified for customer's information," Trai said, adding it would prescribe a manner in which such tariffs should be announced so that there were no hidden costs.