Advertisement
Help
You are here: Rediff Home » India » Business » Report
Search:  Rediff.com The Web
  Advertisement


No scope for cutting mobile tariffs: COAI
Related Articles
Trai cuts charges, mobile calls to be cheaper
 
 · My Portfolio  · Live market report  · MF Selector  · Broker tips
Get Business updates:What's this?
   
  Advertisement
March 09, 2009 19:50 IST
The GSM telecom operators on Monday said that there was no scope for reducing call tariffs further and blamed the telecom regulator for slashing mobile termination charge below cost, but TRAI argued that its prescription was "cost based."

The termination charge is a charge paid by an operator to another on whose network the call ends, but the cost toward this is not much for big players since most calls originate and end in their home network.

"As per calculations based on international best practices, the three year forward looking mobile termination charge was calculated to be around 35 paise per minute," COAI Director General T V Ramachandran said in a statement.

TRAI has slashed the charge to 20 paise a minute with effect from April 1, 2009 from 30 paise now.

When contacted, TRAI chairman Nripendra Misra asserted that they have arrived at 20 paise-figure based on the cost parameters of all the operators.

"....do you think we have done the exercise over last 70 days to arrive at a figure which is not based on the cost," Misra told PTI.

He, however, refused to comment on COAI's allegation and also did not reply to a query whether the operators should pass on the benefit of lower mobile termination charge to subscribers.

In a statement, TRAI said that termination charge for all types of domestic calls such as fixed-to-fixed, fixed-to-mobile, mobile-to-fixed and mobile-to-mobile has been reduced to 20 paise per minute from 30 paise per minute.

"It was inexplicable how the value of 20 paise per minute had been determined," COAI said.

One of the new operators, who did not wish to be named, said that TRAI has succumbed to existing GSM players' pressure and fixed the termination charge at 20 paise, whereas it should have been lowered to just 10 paise or even less.


© Copyright 2009 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
   Discuss   |      Share with friends   |      Print   |   Ask a question  Ask a question   |  Get latest news on your desktop  Get latest news on your desktop

© 2009 Rediff.com India Limited. All Rights Reserved. Disclaimer | Feedback