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Home > Business > PTI > Report

MTNL loses Rs 300 cr for ignoring Trai tariff

May 13, 2003 12:36 IST

State owned Mahanagar Telephone Nigam Ltd will lose an additional revenue of up to Rs 300 crore (Rs 3 billion) for not implementing the standard tariff package announced by telecom regulator Trai.

MTNL has only reduced the free calls to 30 from 75 a month and has not reduced the pulse rate between fixed line to fixed line phones nor has increased the monthly rental in its alternate tariff plan called 'Economy Plan'.

"We are looking at additional revenue sources rather than loading our customers with additional tariffs," MTNL chairman and managing director Narinder Sharma told PTI.  

He, however, declined to comment on the reaction by various political parties including key allies of the ruling National Democratic Alliance, which rocked Parliament last week protesting steep hike in the tariffs for basic telecom services.

He said even the loss in free calls to customers would be compensated to a large extent as the company has reduced charges for various value-added services like Calling Line Identification, call transfer, hotline and three-party conferencing charges.

MTNL has, however, changed the pulse rate for reaching mobile phone users -- both GSM based as well WLL based limited mobility users.

Asked whether the company was expecting a roll back in tariffs compliant to the Inter-connect User Charge due to political considerations, Sharma said Trai has already decided to review the IUC regime but refused to comment on the regulator's role with regard to fixation of tariffs and the methodology applied by the authority.

For a call from MTNL's fixed line network to cellular phone the company has fixed the pulse rate of 60 seconds while the same call to WLL-based phone will have a pulse rate of 90 seconds, Sharma said.

Defending the changed pulse rates for fixed-to-cell and fixed-to-WLL, Sharma said the basic telephone services have not become expensive at all.

The matter of tariffs has taken a serious turn and has seen the involvement of Prime Minister Atal Bihari Vajpayee and Deputy Prime Minister L K Advani as Communication and IT Minister Arun Shourie held a closed door meeting with them and apprised them about the latest developments.

Industry sources said that there might be a partial roll back by Bharat Sanchar Nigam Ltd, whereby pulse rate between fixed-to-cell is likely to be increased to 60 seconds instead of 30 seconds.



© Copyright 2003 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.





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