Opinion - Letters to the Editor

Telecom tariff

Sir, — The Andhra Pradesh Chief Minister, Chandrababu Naidu, deserves praise for demanding "a deeper cut in the telecom rates". This is the need of the hour as communication is the backbone for a country's development. The present telecom tariff in India is very high when compared to other countries. Even the recent rate cut of about 62 per cent is not sufficient.

When the number of users of a product increase, generally the cost of production goes down and the product is available to the consumers at a lesser price, but with the telecom sector it is the exact opposite. When the number of users in a particular exchange increases, the rentals are increased and the number of free calls reduced; I fail to understand this. Why should the customer pay for the increase in the capacity of his exchange? This is very unjust.

It is possible to reduce tariff because the investment is only one-time; the machinery and the lines need be installed only once. Thus the operational costs will be less when compared to revenue.

P.J. Vinu,
Kakinada, A.P.

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