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All phone tariffs may drop soon: TRAI

October 09, 2003 17:49 IST

The Telecom Regulatory Authority of India on Thursday indicated that the existing tariffs of all types of services, be it basic or cellular, may come down with the introduction of the new Interconnect User Charge regime.

"The revised Access Deficit Charge regime will impose a lower overall burden due to lower overall access deficit and thus will allow competition in market to sustain and even to leave scope to reduce the prevailing tariff levels in all services," TRAI said in a statement.

According to TRAI, the principles for new IUC -- charges paid by operators for using other's network -- have been finalised and the same would be notified in the third week of October.

"Under the revised IUC regime, to be announced in near future, the amount of access deficit calculated is much lower than estimated earlier. To remove the regulatory distortions in the current IUC regime the funding of the said deficit will be spread over calls from all access providers and not only from basic services," it added.

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