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Arbitrage gains for STD booth owners?

Kripa Raman

One-Nation tariff

Mumbai , March 24

The One-Nation Re 1-a-minute domestic long distance schemes have not made STD calls cheaper for the poorer sections of society; in addition the schemes provide for an opportunity for any unscrupulous STD booth owner to take advantage of the arbitrage available between the One-Nation and standard STD rates, fear senior officials with Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd.

Citizens of lesser means use STD booths to make their domestic long distance calls. The One-India tariff has not been extended to STD booths or to prepaid calling cards, these officials said.

For lower income telephone subscribers too, the Re 1-a-minute tariff means paying a minimum rent of Rs 299 with no free calls bundled in it. "The higher rental is viable only when you want to make more STD than local calls."

Currently, STD booth owners charge a standard rate of Rs 2.40 a minute for long distance calls and get a commission of 20 per cent from BSNL/MTNL.

They can now get a One-Nation connection and charge customers Rs 2.40 a minute but paying MTNL/BSNL Re 1 a minute. Of course, they will not get the commission of 20 per cent because the connection has not been allotted to them as an STD booth connection, but their margin from this would be far in excess of this commission.

It is possible for MTNL and BSNL to conduct inspections and monitor this kind of cheating, but practically difficult with lakhs of booths across the country, said the officials. "We have frequent complaints that STD booths tweak pulse rates and overcharge customers."

STD-PCO (public call office) owners want the One-Nation tariff applicable to them also, but with a higher commission since tariffs would be much lower. BSNL and MTNL are not agreeable to this.

Related Stories:
OneIndia tariff worries PCO booth owners
STD calls for Re 1 from March 1

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Arbitrage gains for STD booth owners?



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