Rediff India Abroad
 Rediff India Abroad Home  |  All the sections


The Web

India Abroad

Sign up today!

Article Tools
Email this article
Top emailed links
Print this article
Contact the editors
Discuss this article
Home > Business > Business Headline > Report

Cell firms offer free incoming calls

A Correspondent in Mumbai | January 21, 2003 20:17 IST

Cellular companies have decided to offer free cell-to-cell incoming calls across all cellular networks from Tuesday evening, the Cellular Operators' Association of India confirmed on Tuesday. Thiswill be applicable to both prepaid and postpaid subscribers.

"We've made incoming cell-to-cell phone calls from any cellular network free," Rajeev Chandrasekhar, chairman of the Cellular Operators Association of India, said. "We've maintained for over two years that a proper interconnect regime will make cellular tariffs more affordable."

COAI has said that the cellular industry is in the process of upgrading its networks and billing systems to ensure a smooth transition to the new system of mobile-to-mobile incoming free. This processis expected totake up to a week in some service areas.

Consequently, subscribers would transition from the current regime tomobile-to-mobileincoming free between now and February, 2003. The date of launch in different markets would be communicated individually by the respective operators.

Cell operators have also indicated that other incentives, which might include lower rates for outgoing calls, arelikely to be announced in near future. They have declared that theyare in a position to match, even better WLL or limited mobility tariffs, if their request for identical license conditions and terms with regards to entry fee, interconnection and other issues is resolved.

News reportshave said that the 10.5 million cell phone users could look forward to a 50 percent cut in international rates, too.

India's cellular industry, which already boasts the world's lowest-cost local calls, has pledged to cut prices further to battle competition from cheaper limited mobility service operators.

The announcement came after a government-brokered truce in a bitter row between cellular and limited mobility service providers over access fees that badly disrupted service.

The government promised on Monday that the Telecom Regulatory Authority of India would 'come up with regulations for a just and fair interconnect regime' in a couple of days.

If TRAI asks fixed line operators (who also provide WLL services) to pay access charge for connecting to cellular networks, cell firms are ready to announce free incoming calls from landline to cellphones too.

Private cellular firms withdrew an appeal against a regulatory decree ordering them to offer interconnect facilities to calls from limited mobility operators on Monday.

Telecom Minister Pramod Mahajan had announced on Monday that cell operators had agreed to link their networks with limited mobile players, ending the connectivity problem.

The promised tariff cuts were the latest salvo in a two-year war between cellular and fixed-line phone firms offering the less expensive limited radius facility, also known as wireless in local loop mobility services.

The money-losing cellular industry which paid hefty licence fees to offer cellular services says fixed-line operators which paid much lower entry fees to offer limited mobility services have an unfair edge and is demanding a level playing field.

The new fee structure may bring cellular call rates closer to limited mobility facilities which levy no incoming charges. Now only incoming cellular calls within a network are free.

The cuts would be the second since early January when cellular providers slashed national long-distance tariffs.

A cellular industry source said the cuts were based on the expectation that TRAI would soon introduce a fair and non-discriminatory interconnect regime.

Under regulatory rules, cellular customers now pay Rs 1.20 for a three-minute local call to fixed-line and limited mobility users while fixed-line firms and limited mobility service users pay nothing for calls to cellular clients.

The cellular firms which include Bharti Tele-Ventures Ltd -- 16 per cent owned by Singapore Telecommunications -- and the Indian unit of Hutchison Whampoa conglomerate, call the charges their users pay discriminatory.

They want the regulator to exempt their customers from the fee or get users of fixed-line and WLL services launched by private players such as the powerful Tata and the Reliance groups to pay a similar sum.

However, this rate cut could further intensify the price war between limited mobility service providers and cellphone companies. Even state-owned telecom giants like MTNL and BSNL might cut rates to give the other operators a run for their money, say analysts.

Additional inputs: Reuters

Cell cos may cut ISD rates by 50%
TRAI warns cell operators over interconnect
TRAI notice to Bharti, Idea, Hutch, BPL
MTNL denies blocking cell to fixed line calls
Reliance set to revolutionise mobile services

7333: The Latest News on Your Mobile!

Share your comments

 What do you think about the story?

Read what others have to say:

Number of User Comments: 33

Sub: all the cellular operators are making fool on their subscriber

all the oprators all very much intended for only their income. none of the operstors are intrested to do service to their customer.all the operstors ...

Posted by vijay anand

Sub: discriminaton by TRAI

trai has been discriminating between wll-m and cellular operator.this will no only kill the business in india but will also hamper the further foreign investments ...

Posted by kamlesh

Sub: Is this Service ???

Hi, You could take this as a lament from one of the person affected by the farce the mobile operators have played on the general ...

Posted by Jai

Sub: consesstional hours (9 PM to 9AM) no more charged less?!?!?!?

Earlier Orange,BPL,Airtel were having concesstional rate for 9 PM to 9 AM which are no more displayed on there websites and chargeing same rate as ...

Posted by Garib pasha


no service provider is clear about the rates to be quoted, and no one sticks to what they say. They give some thing on paper ...

Posted by ln basetti



Copyright 2005 India Limited. All Rights Reserved.