Further reduction in telecom tariff likely

By Our Special Correspondent

NEW DELHI, AUG. 29. The Communications Minister, Mr. Ram Vilas Paswan, today hinted that the telecom tariff up to a distance of 200 km may be further reduced. Replying to a discussion on the New Telecom Policy '99 in the Lok Sabha today, the Minister said that instead of the 24-hour flat rate being currently charged for calls between 50-100 km. and 100-200 km, the Ministry was planning to introduce peak and non-peak rates.

On January 26, the Bharat Sanchar Nigam Limited (BSNL) had reduced the rates in two short distance slabs - 51-100 km and 100-200 km. The tariff in the first slab was reduced by eight times - from the existing time pulse of 15 seconds to 120 seconds. In the second slab, the rates were halved - from the existing 15 second pulse to a 30-second pulse.

The loss incurred by reducing the tariff was compensated partially by slightly increasing the rentals. The overall loss to the state-owned BSNL was estimated at Rs. 200 crores per year and if the traffic increased, as anticipated by officials, this revenue loss could be cut down by Rs. 50 crores. While hinting at a further reduction, Mr. Paswan did not state how the resultant loss due to a further decrease in call charges during non-peak hours in the two slabs would be recouped.

Mr. Paswan turned down the demand made by Dr. V. Saroja (AIADMK) for increasing MTNL's area of operations to Chennai. This demand was now irrelevant because the former Department of Telecom Services had been converted into a corporation (Bharat Sanchar Nigam Limited) just like MTNL. ``Both will work in their areas of jurisdiction,'' he said thus rejecting the demand made frequently in the past by both the AIADMK and DMK.

For the most part of his reply, the Minister dwelt on the ideological and ethical issues at stake. At times, though, he would narrate the entire sequence of events leading to finalisation of a policy to suggest that there was transparency at every stage. Frequently interrupted by the Congress benches for not directly replying to the points made by earlier speakers, Mr. Paswan said the ``doors of telecom liberalisation'' were opened by the Congress and the process had travelled too far down the road to be reversed.

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Section  : National
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