Date:21/01/2005 URL: http://www.thehindubusinessline.com/2005/01/21/stories/2005012101630700.htm

Back Airtel, Hutch slash long distance tariffs

Our Bureau

New Delhi , Jan. 20

LONG distance calls on mobile phones will become cheaper from February 1, as Airtel and Hutch have announced tariff cuts for both the domestic and international sectors. While international long distance calls will be cheaper by Rs 1.75 a minute, domestic calls will cost less by 35 paise a minute to all destinations.

The move comes after the recent cuts in the Access Deficit Charges (ADC) announced by the Telecom Regulatory Authority of India (TRAI). The telecom regulator had cut the deficit charges on outgoing ISD calls by Rs 2 a minute and between 20 paise and 50 paise a minute on STD calls.

In effect, it means that calls to the US, which currently cost about Rs 16 a minute, will now cost about Rs 14.25 a minute and an STD call from Delhi to Chennai, which comes to about Rs 4.99 a minute, will now be Rs 4.64 a minute. The reduction will be more amplified in cell-to-cell STD calls, which will cost Rs 1.64 a minute as compared to Rs 1.99 a minute at present.

Announcing the new tariffs for Airtel, Mr Manoj Kohli, President Mobility, Bharti Tele-Ventures, said, "The benefits extended are in keeping with our commitment to pass on the benefits of reduction in ADC directly to our customers. The tariffs announced are simple, innovative and provide the best value for money to our customers. This, we believe, will fuel new acquisitions and also spur usage increase."

Mr Harit Nagpal, Chief Marketing Officer, Hutch, said, "We are passing the benefit of the ADC reduction on long distance to our customers. The introduction of these tariffs is subject to the implementation of the TRAI regulation."

While Airtel has more than 10 million mobile subscribers, Hutch has about 7.2 million users.

Other mobile operators like Idea Cellular are also expected to follow suit with a tariff reduction.

However, with State-owned Mahanagar Telephone Nigam Ltd challenging TRAI's ADC regime in court, one will have to wait till January 24 to know the status of the revised tariff.