TRAI set to announce new basic telecom tariff today

The Telecom Regulatory Authority of India (TRAI) will announce the revised basic telecom tariffs including monthly rentals, call charges and...

The Telecom Regulatory Authority of India (TRAI) will announce the revised basic telecom tariffs including monthly rentals, call charges and the much awaited interconnection charge on Saturday.

At present, the basic telecom tariffs are subsidised. The monthly rental varies between Rs 70 to Rs 250 depending upon the areas and capacity of telephone exchange while the call charges are Rs 1.20 for a three minute call.

Customers get 75 free calls in a month. The basic telecom players, both state-owned and private, have been demanding an upward revision in tariffs especially because of a significant reduction in the long distance call charges which were used for part recovery of cost in basic services.

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The Telecom Regulatory Authority of India’s review process follows four months of intense consultations with stake holders including industry, consumer organisations, investors and analysts.

The regulator held various open houses in all metros besides other major cities.

The revised tariffs come after a fortnight long stand-off between cellular and basic telecom operators over the issue of interconnection charge.

The cellular operators have been demanding reciprocal interconnection charge which their subscribers have been made to pay for making a call on fixed line phone.

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The cellular subscribers pay Rs. 1.20 over and above the airtime for call to fixed line phones as well WLL mobile phones.

The basic operators have been saying that cellular operators retain the entire airtime with them whereas the basic players operate below cost in view of offering services in the non-profitable rural areas.