The Hindu : TRAI to review phone tariffs

Online edition of India's National Newspaper
Sunday, May 11, 2003

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TRAI to review phone tariffs

By Our Special Correspondent

NEW DELHI MAY 10. The stage has been set for a partial revision of the new phone tariffs with the Telecom Regulatory Authority of India today formally announcing its decision to begin consultations on various issues regarding the interconnect user charge (IUC) regime and on certain principles for tariff packages.

The outcome of the decision to begin the consultation process rules out any immediate relief to phone subscribers through TRAI. This is because it would take three to four months to complete the consultations and finalise new proposals.

With several of the Government's allies taking umbrage at the new tariffs, there is a distinct possibility of the Bharat Sanchar Nigam Limited being pressured to provide immediate relief such as increasing the pulse rate for calls from fixed to cellular phones.

Unnerved by the criticism of its recommendations by political parties, phone companies and citizen groups, TRAI had set up an in-house group a couple of days ago to begin the process of reviewing some of its contentious recommendations. Sources said the die was cast after a section of industry was promised a second look at some recommendations provided it withdrew a case filed before the telecom tribunal.

This section of industry did withdraw the complaint which had made TRAI morally bound to examine its recommendations.

While the tariffs are being examined, TRAI has renewed its appeal to phone companies whose tariff packages have not been cleared to follow certain principles such as eschewing the predatory and discriminatory propensities.

In the case of cellular and limited mobile (WLL), the examination overshot the implementation date of May 1 not only because of the large number of tariff packages received but also because a number of service providers are refiling their tariffs.

Also, the diversity among the various tariff schemes required steps to standardise them so as to apply consistent criteria of evaluation to all of them, said TRAI.

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