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Gradual restructuring of Telecom tariff suggested

The Telecom Regulatory Authority of India has mooted gradual restructuring of tariffs depending on the changes in demand, traffic and revenue generation of service providers.

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In a consultation paper circulated recently, the proposed tariff may result in lower revenues by 35-55 per cent.

Resources for reinvestment by Department of Telecommunication and the Mahanagar Telephone Nigam Limited need to be internally generated up to 65-70 per cent as borrowings beyond 30-35 per cent cannot be supported, the paper noted.

Hike in access charges and local charges that affect low-end users may impact growth of teledensity, the paper said adding that differential regulation should be practised with incumbent being subject to more regulation till new operators gain 35 per cent market share.

TRAI had invited suggestions from service providers, institutions and non-governmental organisations and consumers on the issue of the telecom tariff re-balancing exercise.

Cellular service providers stressed for separate tariff structure for metros and circles. Revenue sharing from long distance calls on the same lines as for basic services was also suggested.

In the VSAT sector, the major concern was over the effect of reduced lease line charges on the market share of the VSATs.

TRAI has also held a two-day open-house discussion on the quality of service and telecom pricing. Consumers put across their grievances to TRAI Chairman Justice S S Sodhi and other officials.

The open house solicited suggestions on determining levels of tariffs, effective dates of implementation of the various proposals, phasing of the revised tariffs and finalisation of cost basis.

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