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The controversy over fixing new tariffs by the Telecom Regulatory Authority of India has been resolved with the government today deciding not to increase telephone rentals or call charges for people living in rural areas and the lower income groups of urban areas.

However, it is not very clear immediately whether the government has reached a compromise with TRAI or it is unilaterally overruling the statutory authority.

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But the government has clarified that as recommended and notified by TRAI, long-distance calls, both domestic and international, would be kept at the reduced levels.

Communications Minister Jagmohan told reporters the government is keen to help the weaker sections of the society, particularly those people residing in villages and those in the low-income groups in urban areas.

Jagmohan justified the changes made to the March 9 order of the TRAI by saying that the government wished to make telecom services affordable in the rural areas.

Now there will be no increase in rental or call charges payable by rural subscribers.

Similarly, he said, there would is no increase in call charges and decrease in free-call limit for the urban low income groups making calls up to 200 units per month.

The urban high calling subscribers, making more than 200 calls per month, will be allowed to retain the free call limit at the present level of 75 calls per month.

The TRAI had notified the free-call limit for them at 60 calls. The government has now disallowed this.

Jagmohan revealed that the TRAI has been asked to implement its order for the first year only and subsequently re-work the tariff rates in view of the developments following the announcement of the new telecom policy.

The date of implementation of the new telecom tariffs has been changed from April 1 to some later date.

The TRAI is to fix the new date such that it is not earlier than April 15. This is because some time is required to effect necessary changes in all the computerised exchanges spread all over the country, Jagmohan explained.

According to the changes announced by the government, the Department of Telecommunications and the Mahanagar Telephone Nigam Limited as operators of service will have the tariff structure for basic services in urban and rural areas as follows:

• There will be no increase either in rentals or call charges for rural subscribers.
• There will be no increase in rentals or call charges for urban low-calling subscribers who make up to 200 calls per month.
• For other urban subscribers, who will be using more than 200 calls per month, the call charges will be at the rate of 80 paise per call against the Re 1 per call notified by TRAI. They will be entitled to retain 75 free calls per month. The rentals have also been reduced to Rs 70 per month against Rs 120 per month notified by TRAI for them.

Call Charges (Numbers per month)
Existing	TRAI notified	DoT's tariff
50	120	70
75	120	120
100	120	120
137.5	180	180
180	250	250
190	250	250

Earlier:

• Good intentions
  The new telecom policy has put on paper the government's several promises over the last few months.
• TRAI refuses to buckle under over tariff revision
• Jagmohan sticks to his guns on tariff revision issue
• TRAI challenges objections to tariff revision
• Telephone tariff hike order put on hold
• New phone tariff makes local calls, rentals expensive

UNI

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