Date:16/08/2007 URL: http://www.thehindu.com/2007/08/16/stories/2007081660551600.htm
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TRAI efforts to safeguard subscriber interests

Sandeep Joshi

Airtel, Hutch raised the call and SMS charges recently

NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has taken a strong view of the recent hike in call and SMS charges made by the two leading telecom operators — Airtel and Hutch. The telecom regulator has decided to step in to see what steps could be taken in this direction to safeguard the subscribers’ interests.

Though TRAI cannot directly intervene in the matter as mobile tariffs are under forbearance (operators are free to fix their call and SMS rates), it can ask operators to spell the logic behind the hike. It can also start a consultation process seeking various stakeholders’ opinion on mobile tariffs or ask subscribers where they are being benefited by sops given to mobile companies by the Government.

“TRAI has the responsibility of ensuring that mobile tariffs are subscriber-friendly and that the mobile companies are in no way fleecing their subscribers by levying unwarranted call charges. Any hike in call or SMS charges should be justifiable. However, the reasons being given behind the recent hike seem to be a bit unrealistic,” said a senior TRAI official.

Interestingly, both the operators made identical changes in their tariffs and that too on a similar date.

So, there was the need to find out whether any cartel is working behind this or not, said the official, adding that the hike in tariff comes despite efforts being made by the Union Telecommunications Minister, A. Raja, seeking further reduction in call charges.

“Mr. Raja is likely to meet TRAI Chairman, Nripendra Misra, soon to discuss the possibility of further reduction in call charges,” the official added.

“TRAI has been constantly monitoring the situation since the reduction of access deficit charges (ADC) announced by the Department of Telecommunications a few months ago. We were hoping that the mobile operators would pass on the benefit to the subscribers instead they have chosen to increase the tariffs of local and national call charges and also that of SMS. We are discussing what action could be initiated from our side,” said the TRAI official.

Both Airtel and Hutch increased their local call and SMS charges from Re. 1 to Rs. 1.20 a couple of days ago, while recently STD call charges were also hiked from Rs. 2 to Rs. 2.40 (for post-paid subscribers) and to Rs. 2.65 (for pre-paid subscribers). Though the hike has been made effective in the Delhi telecom circle only, it is learnt that a similar hike will be effected in other circles as well, and soon other mobile companies will follow suit across the country.

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