Date:27/08/2005 URL: http://www.thehindubusinessline.com/2005/08/27/stories/2005082702770900.htm

Back Fixed wireless subscribers will have to shell out more

Thomas K. Thomas

New Delhi , Aug. 26

SIX million fixed wireless terminal subscribers across the country may have to pay a higher tariff with the Department of Telecom categorising the service at par with mobile services.

This would mean that operators like Tata Teleservices and Reliance Infocomm will have to start paying an additional 30 paise as access deficit charges (ADC) for FWT (fixed wireless telephones), which until now was exempted as it was treated as a fixed line telephone.

DoT issued the notice on the grounds that the operators were not doing enough to restrict the mobility of FWTs and, therefore, it was disrupting the level playing field with cellular operators who have to pay the ADC charges.

When contacted Tata Teleservices officials expressed their disappointment on the notice saying, "We don't understand the hurry to recognise FWPs as WLL (M), at a time when the matter is sub-judice and TDSAT is expected to give a judgment shortly." Tata Teleservices officials also cited the consultation process of TRAI that is under way to review the applicability, admissibility and quantum of ADC.

Another CDMA operator said the directive issued by the Department of Telecommunications would increase the telephony costs from Rs 1.20 per 3 minutes to Rs 2.10 per 3 minutes. "This 75 per cent increase in telecom tariffs will be a blow to the growth of affordable fixed services category. The directive is also contrary to the NTP 1999 formulated by the department itself," said an industry source.

"For over 3 years, the wireline subscriber base has been depleting sharply despite low entry levels and cheaper tariffs. The only saving grace was the growth in fixed wireless services, which has added 2 million new subscribers in one year. The DoT move will hamper the tele-density targets of 200 million by 2007," said an industry source. Over 90 per cent of the fixed telephones from private operators have been provided using the FWT platform.

DoT had issues a number of show cause notice to all the CDMA players offering FWT service after cellular operators pointed out that CDMA players were offering mobile type services using fixed wireless phones to avoid ADC payments.