The Hindu Business Line : Communications Ministry to focus on rural connectivity

AFTER kick-starting the One India dream, the Communications and IT Minister, Mr Dayanidhi Maran, is now looking to make a policy for improving rural connectivity.

"We have to keep introducing new concepts for the telecom sector. My next focus will be on rural connectivity and I hope to make some announcements towards that shortly," Mr Maran told Business Line after BSNL and MTNL announced the Re 1 STD tariff on Friday.

Taking credit for the One India initiative, the Communications Minister said the Government's aim was to remove all hurdles that were in the way to reducing long distance tariffs.

"I have taken step to remove all the artificial hurdles that were there including reducing the licence fee from 15 per cent to 6 per cent, lowering the entry fee and bringing the access deficit charge to revenue share.

"We have also requested the Finance Ministry for further reduction in costs for the operators. With these steps am sure private operators are also well positioned to drop tariffs on the long distance segment."

When asked why the rentals were jacked up, Mr Maran said the new tariff plan was only a beginning and consumers could expect more announcements in future. "We will extend the One India tariff to other plans depending on the success of this initiative," Mr Maran said.

First mover advantage: He said that BSNL had to drop the STD tariffs now to take the first mover advantage or else private operators would have taken the initiative. "I am sure that private operators are also announcing new rates in the next few weeks. Some of them have already started testing waters with small initiatives. This is the first time that BSNL has taken the first step in taking on competition. Previously, BSNL would only react to what other operators did."

Dismissing claims of revenue hit to BSNL as a result of the reduction in tariff, Mr Maran said that the issue was being exaggerated. "The Re 1 a minute STD tariff should be able to check the churn fixed phones users to the mobile segment. We also expect that with this BSNL will be able to bring back over 30 lakh subscribers who had surrendered their fixed line phone. Also the voice traffic will increase to compensate any possible loss."

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