The Hindu : TRAI to allow phone companies to give discounts

Online edition of India's National Newspaper
Tuesday, Jun 25, 2002

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TRAI to allow phone companies to give discounts

By Our Special Correspondent

NEW DELHI JUNE 24. In a move that could promote aggressive marketing in the basic phones segment, the Telecom Regulatory Authority of India (TRAI) has decided to allow companies to offer discounts to high users.

Sources said the TRAI would soon permit phone companies to offer discounts on a non-discriminatory basis to subscribers who make over 500 calls. The move could come as a morale booster to the basic phones market which has been dormant after a short spell of enthusiasm by companies to grab wireless in local loop (WiLL)-based basic phone licenses. However, companies interested in offering bulk discounts will have to file the `tariff plan' before the TRAI one month in advance. The TRAI has already taken steps to reduce the large number of tariff plans being filed by companies since it believes the clutter makes it difficult for subscribers to make a meaningful choice. In order to contain the number of tariff plans, the TRAI has simultaneously notified two orders. One of them restricts the number of tariff plans filed by a company at any given point of time to 25. The second empowers TRAI to charge Rs. 2,000 for each tariff plan and another Rs. 2,000 for every modification.

Meanwhile, Bharat Sanchar Nigam Limited (BSNL) plans to appoint `agents' to recoup outstandings from private parties, State and Central Governments and even the armed forces. These agents can take the help of police or revenue authorities to recover the dues. In turn, they will receive up to 1.5 per cent of the outstanding bill. MTNL is also understood to be considering a similar measure.

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