CPP for cellular mobile services

THE TELECOM Regulatory Authority of India (TRAI) has prepared a consultation paper on issues relating to the introduction of Calling Party Pays (CPP) for incoming calls to cellular mobile services. This consultation paper is also available on their website. The paper discusses at length the advantages and disadvantages of the CPP plan along with the technical and financial implications and mentions the countries that have adopted or rejected this plan.

The TRAI is in the process of consulting the stakeholders on whether the CPP plan should be implemented and if so, should it be optional or mandatory. While this exercise has been made possible due to a recent amendment in the TRAI Act, what remains a mystery is the sudden re-introduction of this proposal. The TRAI had actually passed this order in 1999 but the Order and the Regulation were challenged in the Delhi High Court. What is also not clear is whether TRAI has really perceived that there is a demand for this scheme from subscribers and has therefore placed this issue for discussion before the public.

What is CPP?

CPP refers to the system of providing free incoming calls to the cellular mobile subscriber from a fixed network, as the calling party will pay. At present the basic telephone subscriber pays the same charge of Rs. 1.20 for three minutes whether he calls another basic telephone subscriber on a fixed network or a mobile subscriber.

According to the CPP scheme the cellular subscriber need not pay for the mobile leg of the call from the basic subscriber. The basic telephone subscriber will have to pay a different tariff (much more than the present) when a call is made from a fixed network to a mobile subscriber. The mobile subscriber will under this plan not need to check who the caller is.

The growth of cellular mobile services has been phenomenal in India despite the high tariff structure. Mobile subscribers have accepted the terms and conditions offered by cellular mobile operators. Today, tariff and service charges have become competitive and are much more affordable to many consumers. Cellular service providers have in many cases provided free incoming calls to their subscribers. With the introduction of CPP considerable investment in the form of technical infrastructure would have to be provided for monitoring these calls and billing procedures. Logically, infrastructural costs will definitely be passed on to the consumer. When the calling party pays for calls made from the fixed telephone to a mobile subscriber tariffs are to be set and decisions are to be made on the amount of revenue to be shared by both the fixed and mobile networks. Calls made from PCOs would also pose a problem while setting tariffs for the CPP plan. Also basic telephone subscribers would most certainly get confused on prevailing CPP tariff rates due to the difference in rates levied by the mobile operators.

Undoubtedly the only beneficiary of this scheme would be the cellular operator who is ensured of a guaranteed fixed income. The most affected would be the basic subscriber who has to pay a higher tariff for such calls. A majority of the basic telephone subscribers are not aware of CPP and the complex matrix of issues involved. For more than 80 per cent of the basic telephone subscribers in India the telephone is a necessity, more for receiving calls than making them. Any hike in tariff whether it is for calls or rent has a deep impact on this section.

Considering the above-mentioned facts the plan could be deferred until such time as market forces finally prevail on the introduction of CPP.

As a regulator, the main task of TRAI remains that of providing a level playing field for the service providers keeping in mind the interests of consumers at large. All those who are interested in presenting their views can send in their comments to TRAI, as the process of consultation is still open.

SHOBHA IYER

Coordinator, Citizen consumer and civic Action Group (CAG)

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