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Rediff.com  » Business » Telcos keen to rejig lifetime tariffs

Telcos keen to rejig lifetime tariffs

Source: PTI
February 13, 2006 12:18 IST
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Even as the slogan of their lifetime tariff promise customers one-time service charge throughout life, telecom operators have sought regulatory authority TRAI's permission to change the tariffs under these schemes in accordance with revisions in regulatory terms and conditions.

Telecom Regulatory Authority of India had sought their response on what would happen to the plans if the traffic patterns and Interconnect Usages Charge regime changes substantially. Operators have univocally sought review of these tariffs under a new Interconnect Usage regime if it comes.

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"The tariff plans that have been introduced by the operators have been designed/structured keeping in view the prevalent licensing and regulatory regime, including the prevalent IUC regime. Any substantial change in the regime may necessitate a change in the tariff package offered by the service providers," stated Cellular Operators Association of India.

CDMA operators association AUSPI said, "any change in IUC regime and/or licensing conditions will necessitate corresponding recalibration in the pricing to reflect the changed cost scenario."

Any change in IUC regime will necessitate a corresponding recalibration in the pricing. The new cost scenario may necessitate reduction or increase of costs to the consumers, as the case may be. The IUC charges as specified would implicitly function as a floor to the retail tariffs.

"We do not expect a significant change in the traffic pattern. If it does happen operators should be allowed to change the tariffs, once every 6 months to compensate for the same, said Tata Teleservices Ltd.

Bharti Televentures said any tariff plan, which is introduced by the operator, is designed keeping in mind the prevalent licensing and regulatory regime, including the prevalent IUC regime.

Any substantial change, which may arise in the future, may or may not necessitate a change, depending upon the market conditions, in the tariff package offered by the service providers.

As per the Authority's Telecommunication Tariff (31st Amendment) Order notified on July 7, 2004, the service providers are only required to ensure that no tariff item in a plan shall be increased at least for a period of six months from the enrolment of the subscriber to that plan, said Bharti Televenutres.
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