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Data Access takes lead in ILD rate war

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January 09, 2003 12:09 IST

International long-distance tariffs for calls made from cellphones are set to crash by 50 per cent from a peak rate of Rs 24 to Rs 11.99 with Data Access filing the revised tariffs with the Telecom Regulatory Authority of India.

The new tariffs are expected to be announced in the next week subject to the regulator's nod.

Bharti Telesonic is also reworking its tariffs for international long-distance calls made from cellphones but said it would not be required to seek Trai's approval as the tariffs would be announced by the cellular operators.

Industry sources said Data Access filed its revised tariff proposal with the Trai on Wednesday. These tariffs will make international long-distance calls on a cellphone cheaper than from a fixed line.

An international long-distance call from a fixed line to the US at peak-time tariff costs Rs 24 a minute.

This is the second time that cellular operators will take the lead in bringing down international long-distance tariffs in the past year.

In May 2002, Bharti Telesonic had announced a reduction in international long-distance tariffs from a peak Rs 42 a minute to Rs 24 a minute, which forced market leader Videsh Sanchar Nigam Ltd to bring down tariffs for fixed-line users. The new rate cut will put further pressure on VSNL's bottom line.

Cell firms recently slashed the cell-to-cell domestic long-distance rates from Rs 9 to Rs 3, which has forced Bharat Sanchar Nigam Ltd to offer similar cuts. However, the real threat for cell operators is not from Videsh Sanchar Nigam Ltd or BSNL.

The tariff cuts by cell operators is being driven by the launch limited mobility services by Reliance Infocomm.

To keep their customers from migrating, cellular operators are planning more tariff cuts like free cell-to-cell incoming calls and special home zone packages with reduced airtime rates.

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