The Hindu Business Line : New interconnection usage charges take effect

AFTER getting used to declining cellular tariffs, mobile subscribers will now have to start paying more for select local, STD and ISD calls on account of the revised interconnection usage charge (IUC) regime that has been implemented from Sunday.

While GSM cellular operators have already hiked certain tariffs by 18 per cent to 50 per cent on their lower-end post-paid and pre-paid plans, CDMA mobile operators are in the process of following suit in the next couple of days.

For post-paid GSM customers, a one-minute local call to a landline will now cost Rs 2.49 as against Rs 1.99, while STD calls to mobile phone has been hiked to Rs 2.99 per minute from the existing Rs 1.99. The tariff for STD calls to landlines has been hiked by one rupee across the board. In other words, for distance between 50 km and 200 km, a one-minute call will cost Rs 2.99 (Rs 1.99), between 200-500 km will cost Rs 3.99 (Rs 2.99) and beyond 500 km will cost Rs 4.99 (Rs 3.99).

ISD calls for post-paid customers have been left intact except for the Gulf region, which has been hiked by Rs 3 to Rs 18.99 from Rs 15.99 per minute.

Officials of Airtel, the largest GSM cellular operator in the country, noted that the new tariff structure for post-paid customers of high rental tariff plans is being worked out by the service providers and will be announced in due course.

For pre-paid customers, the cost of local call to mobile phones has been hiked to Rs 2.99 from Rs 2.40 per minute, while tariff for a one-minute call to landline has been increased to Rs 3.80 from Rs 2.80 per minute. STD calls to other mobile numbers has been hiked to Rs 2.99 from Rs 2.40 per minute. Similarly STD calls to landlines have been increased to Rs 4.49 from Rs 3.49 for a distance below 200 km and calls more than the distance will be charged at Rs 4.99 per minute (from Rs 3.99). ISD calls rates to the Gulf region have also been correspondingly increased to Rs 19.99 from Rs 16.99 per minute.

CDMA mobile subscribers too are faced with the prospect of an increase in their tariffs. The two largest CDMA operators — Reliance Infocomm and Tata Teleservices Ltd — are working out the revised rates, which will be announced shortly.

According to Mr T.V. Ramachandran, Director General, Cellular Operators Association of India (COAI), the hike in tariffs was inevitable because of the access deficit charges (ADC) that have been imposed on mobile operators in the revised IUC. The ADC has been levied to compensate BSNL and MTNL for their landline operations which have been priced below cost.

"Cellular operators are left with no choice because of the ADC that has been imposed on them. We have no objection to paying some ADC for calls made to landlines, but what is the logic of subsidising BSNL from cell-to-cell calls which do not touch a landline. BSNL will utilise this ADC to cut its mobile tariffs further while private operators have no other option left. This is clearly anti-competition and against the interest of our subscribers," he said.

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