Differential tariffs under TRAI lens

After lifetime validity plans, differential tariffs have come under the scrutiny of Telecom Regulatory Authority of India, which is planning to formulate policies to check discrimination in such tariffs charged by operators for calls made within their own network and those of others.

TRAI has initiated a consultation process on this also known as 'On-Network' calls (within the same network) with a view to formulate regulatory policies in the matter of interpretation of the principle of non-discrimination in as far as it is applicable to tariffs for telecom services (voice telephony).

This process has been initiated with the issue of consultation paper on differential tariff for On-Network calls.

"The key issue to be deliberated in the consultation process would be the definition of the term On-Network for the purpose of applicability of differential call charges," a TRAI statement said.

In 2004, the authority reviewed the manner in which the principle of 'non-discrimination' was being interpreted and allowed the operators to have differential call charges for On-Network and Off-Net calls. It is more than a year since that review was made.

Since then the market has witnessed a variety of differential tariffs offered by the operators. Some operators have requested the authority to clearly specify as to what would constitute On-Network calls for the purpose of application of differential call charges and whether differential tariffs for On-Network calls should continue to be permitted.

TRAI is empowered to fix tariffs for telecommunication services under Section 11(2) of TRAI (Amendment) Act, 2000. Keeping in view the intensity of competition in access market in general and in the mobile segment in particular, the authority as deregulated the tariff regime during the last few years.

Except for the tariffs applicable for fixed line services in rural areas, and for national roaming in the cellular mobile service, the tariff in voice telephony is deregulated.

However, the tariffs offered by the service providers in their respective space have to be consistent with the principles laid down in this regard, which includes the principle of non-discrimination, non-predation and interconnect usage charges compliance.