TRAI slashes long-distance call rates

TRAI slashes long-distance call rates
ENS ECONOMIC BUREAU

NEW DELHI, AUGUST 28: The Telecom Regulatory Authority of India (TRAI) today announced a sharp cut in the tariffs for domestic long distance calls (STD) and international calls (ISD). It has, however, decided to leave local call rates and telephone rentals untouched. The new rates would be effective from October 1, 2000, and remain valid till March 2002, TRAI said in a statement here.

In large exchanges in metropolises like Delhi, Mumbai, Calcutta and Chennai, where pulse rates are Rs 1.20 per minute, the rates have been slashed by Rs 3.60 per minute for calls made to places within a distance of 200 km to 1,000 km. For calls made to places which are over 1,000 km away, the rates have been slashed by Rs 4.80 per minute. There is no change, however, for STD call rates up to 200 km.

ISD rates for calls made from large metros have also been cut. Calls to SAARC countries which used to cost Rs 30 per minute till now will cost Rs 25.20 per minute from October 1. Calls to the Gulf, Africa, Europe and other Asian countries will now be charged at Rs 40.80 per minute compared to the earlier Rs 49.20 per minute. Calls to the American continent will be charged at Rs 49.20 instead of the present Rs 61.20 per minute -- a fall of Rs 12 per minute.

In places where there are smaller telephone exchanges and in rural areas, the cuts have been more modest. For example, an STD call from a rural exchange in the distance slab of 200 km-1,000 km will now cost Rs 2.40 less per minute where the pulse charges are Rs 0.80 per minute and by Rs 3 per minute in this slab where the pulse charges are Rs 1.00 per minute and the exchanges are slightly larger.

Last year the TRAI had suggested a three-year ``tariff re-balancing exercise'' under which by April this year STD and ISD call rates would have fallen more than this amount and local call charges and telephone rentals would have increased.

As per the new tariff rates, the maximum relief of Rs 4.80 per minute has been given in STD calls for a radial distance of over 1000 km with a pulse rate of Rs 1.20 which have been cut from Rs 30 per minute to Rs 25.20.

A maximum relief of Rs 12 was announced for international calls made to countries in the American continent and other places in the western hemisphere where the rates have been slashed from Rs 61.20 per minute to Rs 49.20 per minute.

The erstwhile TRAI had faced a lot of opposition on this tariff package which was very severe at the local level. As a result, when the new TRAI was set up, it deferred the re-balancing exercise to October, instead of carrying it out in April, 2000, the deadline for the second phase.

The TRAI has refrained from touching the local call tariffs and rentals which are considered to be politically sensitive issues.

After implementing the first phase of tariff re-balancing last year, the Department of Telecom Services (DTS) had said that it had suffered a revenue loss of around Rs 2,000 crore in the last financial year, mainly on account of reduced long distance tariffs.

The Department had said that the traffic had not increased in proportion to the reduction in tariffs.