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TRAI IUC regime to be effective from May 1

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CIOL Bureau
New Update

MUMBAI: The Telecom Regulatory Authority of India (TRAI) has decided to go ahead with the Interconnect Usage Charge (IUC) regime. Under this, cellular subscribers can look forward to free incoming calls from all networks from May 1. TRAI has also cleared all basic telephony tariffs filed by fixed line operators till April 27, and these tariffs would also come into effect from May 1.



However, in the case of cellular and WLL tariffs, TRAI has allowed from the month of May service providers to implement, without prior approval, at their responsibility tariffs which meet certain regulatory principles of non discrimination and non-predatory pricing. In the case of fixed line services, TRAI has approved most of the proposals filed by various operators and the new tariff orders for fixed line services would come into effect from today. Cellular operators have already agreed on the IUC and withdrew their petition before telecom appellate body TDSAT.



The new regime would not have much impact on the tariffs for fixed-to-fixed calls as BSNL and MTNL, which account for more than 97 percent of fixed line subscribers, would continue with the existing rental and pulse rate for fixed-to-fixed calls. This would reduce subscribers' bills. However, revenues of cell operators would not fall, as they would get access charges. Prices of WLL-to-fixed calls would also go up. Cellular subscribers would have to pay less, as all incoming calls would be free.



Another major advantage to cellular subscribers would be that calls to fixed line subscribers will become cheaper as the regulator has reduced access charges for cell-to-fixed calls to 30 paise per minute in metros and 40 paise in circles. The subscribers would have to bear the access charges.






Another interesting aspect of the new tariff is that STD calls from fixed to cellular networks would become 25 percent cheaper than existing rates. Under the alternative tariff packages of BSNL and MTNL, an inter-circle call more than 200 kms made from a fixed line to cellular subscriber will cost Rs 3.60. A call made to another fixed line subscriber would cost Rs 4.80 per minute.



For fixed line subscribers of BSNL and MTNL, fixed line to mobile call costs would be up to six times costlier than fixed-to-fixed calls. BSNL's alternative tariff envisages a 30-second pulse for a fixed to cellular call and a 90-second pulse for fixed-to-WLL call in circles. Pulse rate for fixed-to-fixed calls is 180 seconds.



The TRAI tariff notification envisages that for fixed line subscribers, monthly rentals would go up by up to 11 percent, free calls reduced by up to 50 percent, and pulse rate reduced from 180 seconds to 120 seconds. BSNL and MTNL however, filed new tariffs that continue with the pulse rate of 180 seconds and the existing rentals. Therefore, prices for fixed line subscribers will not go up.






Meanwhile, TRAI has issued a consultation note on IUC dealing with certain aspects of the regime. For an inter-circle call over 500 km, the charges at originating and terminating end with uniform access deficit charge would be Rs two per minute each, while the carriage charge as per IUC rules is Rs 1.1 per minute, taking the total to Rs 5.1 per minute.







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