News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

Home  » Business » Basic players face access charge of 45 paise/90 sec

Basic players face access charge of 45 paise/90 sec

By Thomas K Thomas in New Delhi
January 22, 2003 02:12 IST
Get Rediff News in your Inbox:

Round two of the interconnection war is set to commence with the Telecom Regulatory Authority of India likely to impose an access charge of 45 paise for 90 seconds on basic operators when they connect to a cell network.

TRAI is also likely to drop the access charge from Rs 1.20 per three minutes to 30 paise per 90 seconds for a call from a cellphone to a fixed line.

The basic operators have already expressed their resentment to TRAI. At present, basic operators do not pay cell firms access charges while cell operators pay Rs 1.20 for a three minute call to basic operators.

If the TRAI order comes through, it will mean fixed line phone users and limited mobility phone subscribers will have to cough up an extra 45 paise per 90 seconds.

For a cell user, it will result in marginal benefits as the access charge is likely to be dropped from 40 paise a minute to 30 paise.

The telecom regulator will announce comprehensive interconnect use charges guidelines in the next few days, which is likely to specify the maximum and minimum slabs of revenue share, based on which operators can negotiate the interconnection agreement.

The application of access charge on basic operators will trigger yet another war between cell firms and basic operators.

The Association of Basic Telecom Operators has already shot off a letter to TRAI in an attempt to pre-empt the move.

ABTO has pointed out that cell operators were asked to pay access charges because they were earning airtime charges while basic operators were not earning any.

"Any access charge paid to cellular operators will amount to huge enrichment. In fact, basic operators will have no choice but to pass on the burden to their subscribers. This is nothing but a backdoor entry of the calling party pays regime, which has been overwhelmingly rejected in all the TRAI open houses," said S C Khanna, secretary-general, ABTO.

In the letter, ABTO has said the consumer should not be burdened with a charge that will only enrich the cellular industry.

Cell firms had refused to interconnect with WLL operators without getting access charges.

The issue was resolved on Monday after Telecom Minister Pramod Mahajan assured them that he would request TRAI to announce a fair interconnect regime.

Backed by Reliance, Tata, HFCL and Shyam, the ABTO has vehemently protested against paying any such charges to cell operators. The ceasefire between the two warring sides is expected to be shortlived.

Cell-to-cell incoming calls free

Get Rediff News in your Inbox:
Thomas K Thomas in New Delhi
 

Moneywiz Live!