Telecom Regulatory Authority of India will come out with new tariff for long distance calls and also fix interconnection charges between two points for basic telephone services this month, its chairman M S Verma said on Friday.

"We will come out with new tariff for basic telephone for long distance services and would also fix inter-connection charges between two points (cities) in January", Verma told reporters in Indore.

On the issue of Cellular Operatiors Association of India's petition with regard to tariffs, he said Bharat Sanchar Nigam Ltd was initially allowed to offer attractive tariffs with free incoming facility for 90 days only.

"If Telecom Dispute Settlement and Appellate Tribunal allows it to continue then it will be different thing", Trai chairman said even as he clarified that there was no such thing as free calls whether it was outgoing or incoming and it depends on the operator how he adjusts the tariffs.

Trai was also examining BSNL's tariff and would soon submit its report to TDSAT, he said.

Verma said BSNL will have to normalise its tariffs after the initial introductory offer and said Trai basically ensured that nobody offered anything which was impractical in terms of tariff (much lower than the actual cost).

The Trai chairman said he was happy with the new system as it not only benefited the customer but also offered number of choices.