Date:06/02/2006 URL: http://www.thehindubusinessline.com/2006/02/06/stories/2006020601960200.htm

Back STD rates at Re 1 from this week likely

Our Bureau

New Delhi , Feb. 5

TELEPHONE users awaiting STD rates at a flat of Re 1 to anywhere across the country could be in for a treat with the state-owned Bharat Sanchar Nigam Ltd set to announce its OneIndia tariffs this week.

Though the announcement, earlier scheduled for Monday, was called off due to last minute differences with the Government on the proposed tariff scheme, senior Department of Telecom officials said that major issues have been ironed out and the other glitches would soon be worked out.

The other good news that is expected to pave the way for the adoption of One India tariffs by telecom operators is that the Telecom Regulatory Authority of India is very close to announcing the revised access deficit charges. The new ADC regime proposes to move to a revenue sharing arrangement instead of the existing norm of levying the charge on a per minute basis. ADC on long-distance charges was one of the reasons why the operators were expressing their inability to comply with OneIndia call tariff proposed by the Communications Ministry.

ADC is the levy charged on operators for funding unviable telephone connections in rural India.

At present, the charges vary up to Rs 1.10 per minute, which makes it difficult for any operator to drop STD rates to Re 1. The new regime may propose a fixed revenue share like the 5 per cent share currently being paid by the operators to fund universal services obligation. Such a move will pave the way for lowering the long-distance charges further.

On the international long-distance sector, TRAI is likely to retain the current model of charging ADC on a per minute basis. While at present the ADC rates on ISD calls vary between Rs 2.50 a minute and Rs 3.25 a minute for outgoing and incoming calls, TRAI is likely to bring down the charges by almost a rupee. This will deal a blow to the grey market in the ISD segment, which has been thriving due to the high arbitrage charges.