Date:28/03/2003 URL: http://www.thehindu.com/2003/03/28/stories/2003032805380100.htm

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TRAI puts off new tariff regime

By Our Special Correspondent

NEW DELHI MARCH 27. The Telecom Regulatory Authority of India (TRAI) today announced the postponement of the new tariff regime and inter-connect user charges (IUC) by one month to May 1.

``The various proposed alternative tariff plans have been received from service providers between March 10 and 24 and need detailed consideration and revision. Since both IUC and alternative tariff plans, if approved, need to be implemented simultaneously, the service providers have been asked to file their plans by April 3 so that the IUC and different tariff could be implemented from May 1,'' said a TRAI statement.

The TRAI had proposed a two-minute pulse rate and higher rentals for basic phones and incoming free calls from any service to cellular phones. However, companies were free to offer better terms than the standard tariff package specified by the TRAI. As a result, telecom companies filed different tariff cards for basic phones on the lines of alternative tariffs offered by cellular companies. Though all companies have filed the packages by March 24, the TRAI feels that they need detailed consideration or revision.

The second salient feature of the announcement was the new IUC, which is the charges paid by one company to another for calls from one network to another.

``The tariff order and the IUC were specified as interlinked regimes, and, therefore, should be implemented together,'' stated the TRAI announcement. All telecom companies have been asked to file their revised plans by April 3 to allow the TRAI to take a second look and accord formal approval.