THE HINDU BUSINESS LINE
Financial Daily
from THE HINDU group of publications

Monday, May 21, 2001

• AGRI-BUSINESS
• COMMODITIES
• CORPORATE
• FEATURES
• LETTERS
• LIFE
• LOGISTICS
• MARKETS
• MENTOR
• NEWS
• OPINION
• VARIETY
• INFO-TECH
• CATALYST
• INVESTMENT WORLD
• MONEY & BANKING
• LOGISTICS

• PAGE ONE
• INDEX
• HOME

News | Next | Prev


Cell operators in Delhi take subscribers for a ride

G. Rambabu

NEW DELHI, May 20

THE customer may be king, but certainly not if he subscribes to a cellular mobile phone in the Capital.

Despite frequent interventions by the Telecom Regulatory Authority of India (TRAI), the private cellular providers in Delhi continue to take the customers for a ride, for all they are worth. Complaints by consumer organisations notwithstanding.

It is nearly four months since the TRAI passed its tariff returns order asking all cellular operators to refund dues to the customer on account of the change in lisence fee regime.

The two private cellular operators in the capital -- AirTel and Essar Cellphone -- together have to refund a total of Rs 28.5 crore to their subscribers. The refund amount by Airtel totals Rs 15 crore and that of Essar Cellphone is close to Rs 13.50 cro re. While Airtel subscribers have no complaints regarding the refund, Essar cellphone subscriber are still groping in the dark.

The TRAI in its order dated January 25, 2001 had clearly specified the refund amounts of the cellular operators for each circle. In the metros, it works out to Rs 178 per month per subscriber plus Rs 1.35 per minute of use for the period between August 1 999 and January 2000. For the period from February 2000 onwards, the refund has been calculated at Rs 53 per subscriber less Rs 0.65 multiplied by the actual minutes of airtime usage. This should amount to sizable returns for the existing subscribers.

The Authority had also directed that ``refunds could take place by reduction of bills over a period of four months beginning from 1st April 2001''. Further, that extensive publicity on refunds should be made by the service providers.

Essar subscribers are still clueless. Infact leave alone the `extensive publicity', many of the subscribers are not even aware that they are eligible to get a refund. It would surely come as a welcome relief to the harried subscribers, who are paying the highest tariffs in the entire country.

Strangely enough, contrary to normal practice the world over, the tariffs in Delhi have reduced at a lesser pace than the growth in the subscriber. Despite being the `largest' and the `most mature' cellular market in the country, the subscribers continue to pay the highest tariffs, something that surely defies logic.

In fact, the operators reduced the tariffs only when faced with competition, from surprisingly enough, a State-run organisation Mahanagar Telephone Nigam Ltd (MTNL). Incidentally both the private operators in Delhi have been providing nearly similar tari ffs and services -- a duopolistic arrangement of sorts, leaving the poor customer with very little option in this `free market'.

That apart, the operators are not even providing the subscribers with the minimum standards of service as set out in the lisence agreement. Like emergency call services, call success rate of more than 99 per cent, timing to release calls of two seconds, provide facility for conference call, reverse charging and scratchpad memory. Even if they are being provided, a majority of the subscribers are not aware of it. While they go to town with their `value-added services', basic free facilities are more ofte n ignored.

By the way , who said customer is king?

Comment on this article to BLFeedback@thehindu.co.in

Send this article to Friends by E-Mail


Next: Workshop on mass telecom
Prev: Rentals prove WLL not `cheap' option: COAI
News

Agri-Business | Commodities | Corporate | Features | Letters | Life | Logistics | Markets | Mentor | News | Opinion | Variety | Info-Tech | Catalyst | Investment World | Money & Banking | Logistics |

Page One | Index | Home


Copyrights © 2001 The Hindu Business Line.

Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line.