The Hindu : New phone tariffs on hold

Online edition of India's National Newspaper
Friday, May 02, 2003

National

National

New phone tariffs on hold

By Sandeep Dikshit

NEW DELHI MAY 1. The new telecom tariff plans of several phone companies, including BSNL and Reliance, could not be implemented from today as TRAI was unable to give them a formal clearance. Confusion reigned in the telecom sector today even as the Telecom Regulatory Authority of India officials grappled with the huge workload they have thrust on themselves.

It is understood that the cellular and limited mobility plans of BSNL and the limited mobility plan of Reliance are on hold.

The representatives of at least three companies, including the BSNL and Reliance repeatedly met TRAI officials, who sought certain clarifications on the tariff plans to ensure that they are neither discriminatory nor predatory. After receiving the clarifications and ensuring changes in the tariffs, if found necessary, the TRAI is expected to formally approve the tariffs over the next few days. Officials of TRAI, BSNL and Reliance confirmed the development.

More than reflecting the "predatory" or "discriminatory" attitude of the phone companies, the non-implementation of the tariff plans indicates the TRAI's inability to come to terms with the magnitude of the task. To be fair to TRAI, a new team has just assumed office and the workload is unprecedented. Its officials said they could have postponed the implementation of the tariffs by another month, but that would have led to accusations of the regulator giving breathing space to one corporate giant or another.

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