The Hindu Business Line : Tariff war

This refers to the editorial, "Tariff treat for cell users" (Business Line, August 31). There is no doubt that the ongoing tariff war may provide ample space for relief for the large subscriber base across the country.

The recent cut downs declared by BSNL may provoke other players, especially Reliance Infocomm, to go softer on the subscribers. The reduction inon the fixed-line long distance charges by BSNL should bring relief to local call charges in the land phones.

It is a fact that, in the process of a tariff concession war, all the major players forget the land phone user. BSNL, in the past, had successively reduced the number of free calls in the land phones, to the detriment of the subscribers.

Reliance Infocomm set a model to relax certain terms in the tariffs of land phones, but BSNL, the major player in fixed lines, has to take cue from the streets on the ever-increasing grievances of crores of their conventional subscribers, while offering more relaxations to the mobile phone users.

The BSNL mobile customers are anyway happy to receive comforting tariff options. The reduced average revenue per user, which was compensated by the increased minutes of usage by the prepaid and the post paid subscribers, need haunt the players no more. Thus, the way to sustain the tariff war seems to quite open and free.

The reduction in the operating costs may prove a booster in the process. Hence, nobody would be surprised if the tariffs get a further squeeze of 30-40 per cent on an average.

With the market stabilisation of all the four major players, the subscriber would be able to witness a more competitive stage set to his advantage. The present 40-million base of mobile subscribers would then reach skyrocketing figures. It goes without saying that in such a state of affairs, the operators may have to tap the market for raising funds.

C. P. Velayudhan Nair

Kochi

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

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