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Long-distance call rates likely to turn cheaper

Telecom Dept mulls allowing operators to sell calling cards.

Our Bureau

New Delhi, Feb. 1 STD tariffs could come down further with the Department of Telecom proposing to allow long-distance telephony operators to directly sell calling cards to subscribers.

The final decision will be taken by the Telecom Commission, which is expected to meet on Monday to consider this initiative.

The Commission, which is the apex decision-making body of DoT, is also expected to discuss the policy for allowing unrestricted Internet telephony which will allow consumers to make STD calls using a laptop or a PC through their Net connection.

Both the moves follow suggestions by the Telecom Regulatory Authority of India to bring more competition in the long-distance segment.

Freedom to choose

In August, TRAI had recommended allowing consumers to buy calling cards directly from the STD and ISD operators in the country. At present, consumers do not have the freedom to choose the long-distance operator.

The long-distance operator is chosen by the access provider (cellular and fixed line telephone operators).

DoT may agree to permit calling cards, which will then allow long-distance operators to sell their cards directly to consumers.

This will enable subscribers to choose their long-distance operator. So an Airtel mobile subscriber will be able to use BSNL’s calling card for making long-distance calls. At present, an Airtel subscriber is forced to make a long-distance call using Airtel’s own network.

Calling cards will enable significant reduction in long-distance tariffs, say industry experts. ILD tariffs could immediately fall by at least 75-80 per cent as competition in the segment intensifies. Internationally, calling cards are offered by a large number of long-distance operators, which has resulted in tariff reduction.

A calling card, however, limits the benefit to those consumers who know in advance that they will make a lot of long-distance calls in a month.

It also makes it difficult for the consumer to change their long-distance operator quickly as they would prefer to finish the value of the calling card before purchasing another one from a different operator.

Related Stories:
STD calls: Carrier choice looks distant for users

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