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Friday, Feb 06, 2004

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Mobile tariffs

The implementation of interconnection usage charges (IUC) regime has left the mobile telephone subscribers with no option but to exit. Having rushed in, when the mobile tariffs were revised downwards, they are now trapped in a high tariff regime.

While reducing the tariff sometime back, the mobile phone operators knew very well that IUC will force them to revise the tariffs upwards. However, they went ahead with their downward revision of tariff with a view to enlarge their subscriber base. It is surprising that TRAI, which should know better, remains a spectator in this whole episode leaving it to the market to determine the tariff. It is also interesting to note that the operators have taken extra effort to specify the charges to the last paisa. It is to be pointed out that one paisa by itself has no value at present.

One does not know who, the operator or the subscriber, gains by such tactical pricing. One hopes that TRAI will step in to implement fair and practical pricing.

S. Iyaswamy

Nagercoil

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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