STD, ISD rate for cells to rise from Dec. 1
The telecom tariffs would once again be subjected to revision with the TRAI on Wednesday announcing the much-awaited revised Interconnect User Charge regime for the sector.
The revised IUC regime, while sparing WLL mobile and cellular operators from paying additional charge for connecting calls into each other’s network within a circle, has specified additional network charges or Access Deficit Charge for inter-circle calls depending on distance. It has also freed the regulated basic telecom tariffs except for rural tariffs and PCOs.
ADC is a charge an operator gets for offering service at a lower cost to meet the social obligations set by the government — like offering telephones in rural areas and inaccessible areas at higher infrastructure cost. As per the revised IUC, the inter-circle calls (from one state to another), network charges have been imposed ranging between 30 paise per minute for calls upto 50 kilometres, 50 paise for calls for a distance of 50-200 kilometres and 80 paise for above 200 kilometres. On all international long distance calls, a charge of Rs 4.25 has been fixed between all types of services.
The revised IUC will come into effect from December 1, 2003. The new charges will support an operator, basically BSNL, for offering services at lower cost. As per the revised regime, TRAI has estimated the access deficit of state-owned Bharat Sanchar Nigam Ltd at Rs 5,340 crores, which is lower than the earlier estimates. Welcoming the revised IUC regime, the Cellular Operators’ Association of India president Dilip Modi said that with the new ADC announced there might be some negative impact on telecom tariffs in few segments, but by and large there should not be any major change.
However, Association of Basic Telecom Operators raised some concerns about the IUC saying the regulation would lead to private basic operators funding BSNL, which is a profit making organisation as ADC collected on WLL mobility inter-circle (between two circles) calls will be paid to state-owned corporation and cannot be retained by private operators.
ABTO secretary general S.C. Khanna said that despite their representation, TRAI has failed to check payment of port charges by basic operators in addition to IUC in the revised formula. “This is a double charge for us,” he said.

Republished from The Asian Age