Need to examine MTNL tariff proposals: TRAI

BANGALORE: Telecom Regulatory Authority of India (TRAI) has said that tariff proposed by the Mahanagar Telephone Nigam Ltd. (MTNL) for its cellular services needs to be examined for cross subsidization and other related issues. The cost-based tariffs that were specified by TRAI were based on costs submitted by service providers using a different technology-group speciale mobile (GSM), TRAI chairman Justice S. S. Sodhi said.

Addressing an open house on MTNL`s tariff proposal for cellular mobile services, Justice Sodhi said consumers` interests are important but if a particular tariff was found to be below cost and so not sustainable, consumer benefits from the low tariff is likely to be short-lived. Private cellular operators said that tariff fixed by MTNL was likely to create financial pressure on the existing service providers. The Cellular Operator Association of India (COAI), however demanded that MTNL should not be allowed to retain the local call component of Rs 1.20 a call made from the cellular system.

For local calls from mobile phones to fixed lines, existing cellular mobile telecom service operators (CMTs) have to pay Rs 1.20 per three minutes as interconnect access charges to MTNL or Department of Telecommunication (DoT) for such calls terminating at the fixed networks.

COAI demanded high entry fee from MTNL because of advantages like significant market power in fixed line operations in Delhi and Mumbai, well-developed cellular market and entering the market with choice of technology. MTNL said it was an existing player and only revenue sharing at 15 per cent would be paid to the DoT as in the case of other service providers.