Rediff India Abroad
 Rediff India Abroad Home  |  All the sections

Search:



The Web

India Abroad




Newsletters
Sign up today!

Article Tools
Email this article
Top emailed links
Print this article
Contact the editors
Discuss this article


Home > Business > Business Headline > Report


TRAI chief finds it hard to justify hike

Onkar Singh in New Delhi | January 25, 2003 17:22 IST

TRAI Chairman M S VermaM S Verma, chairman, Telecom Regulatory Authority of India, had a tough time in defending his decision to raise basic telecom tariffs and offer major concessions to the cell phone and WLL users.

While the telecom regulator announced a hike in the rentals for basic telephone services, it declared that all the incoming calls and on WLL would henceforth be free.

Verma was taken aback when one of the journalists asked him if it was not true that TRAI was meant to protect the interests of the elite and business community as it has been passing the burden on to the middle class.

"If that is the impression going around then all that I can say is that it is not very good. TRAI is a constitutional body and it has been created to protect the interests of the consumers. We would be failing in our duty if we did not do so," he claimed.

Verma ducked under another bouncer when a scribe asked him to list the gains as a telephone subscriber and not as a chairman of TRAI. Verma just let the question pass without attempting to answer them.

A senior TRAI official claimed that the fixed-line rentals were highly subsidised as a single 'copper telephone pair' costs as much as Rs 30,000 per subscriber.

Another official of the TRAI admitted that most of the members were in favour of raising the long-distance calls marginally and thereby raising the revenue instead of raising the rentals of the fixed-line phones and reducing the pulse rate from 180 seconds to 120 seconds.

"But some powerful people overruled this decision. Please do not quote me on this otherwise they would be after my life," he claimed.

When asked how much revenue did they expect to raise through the changes that they have been announced, Verma refused to give a categorical reply.

"I have the figures in my office. I do not remember them offhand," he said before calling off the informal discussion with the newsmen on the pretext that he has to rush out for a meeting.

However, analysts feel that with the new charges coming into effect from April 1, 2003, the average increase in the basic telephone bills could be around 30 per cent.




Share your comments


 What do you think about the story?




Read what others have to say:


Number of User Comments: 18




Sub: Increase in land line telephony rates

Dear Sir, The move effectively bugles out last post of fixed connections. Land line is dead long live wll. Regards, V. Bala Subrahmanyam


Posted by V. Bala Subrahmanyam





Sub: Phone tariff hike

Another blow below the belt for the middle class. Telephone is more of a necessity than being luxury. These people are only interested in protecting ...


Posted by arun





Sub: TRAI

It is unjustified but with no competition the people will have to digest this monopoly


Posted by Somnath





Sub: TRAI and hike in land-line rates

Dearer post-cards and cheaper foreign liquors is the essence of the "New Economic Policy" - also known as "Liberalisation, Privatisation, Globalisation" (or LPG). The present ...


Posted by Sukla Sen





Sub: Hike in Telephone charges

Our country instead of going forward is going backwards towards the stone age. If the goverment is truly bent on making India a IT powerhouse ...


Posted by Krish




Disclaimer


Advertisement






Copyright © 2006 Rediff.com India Limited. All Rights Reserved.