The Hindu Business Line : TRAI mulls lower mobile charges for rural areas

The Telecom Regulatory Authority of India (TRAI) is mulling making it mandatory for operators to offer a mobile connection in rural areas at lower entry costs. The move is aimed at making affordable phone connection available to rural subscribers since TRAI is planning to abolish the subsidy support in the form of Access Deficit Charge from April this year.

“The objective is not to micromanage the market but to ensure that the benefits of abolition of ADC are effectively transferred to achieve the objective of increasing the rural tele-density by making the services affordable which would thus bridge the urban rural divide and increase rural tele-density,” TRAI said in a consultation paper on ADC.

“In view of phasing out of ADC, as a result of the saving that would accrue to the service providers, there may be a scope to lower the entry barrier in rural areas and making services increasingly more affordable without the need to disturb the existing policy of forbearance on mobile tariff,” said a press release. At present, operators take various forms of upfront charges including activation charges, registration fee and monthly rentals. TRAI has sought views from the stakeholders whether lower charges should be fixed or should there be any other scheme whereby rural subscribers can get affordable tariffs.

TRAI has also proposed to continue financial support to Bharat Sanchar Nigam Ltd, which owns 99 per cent of fixed line phones in rural areas, from the Universal Services Obligation Fund. The USO fund has about Rs 15,000 crore lying idle in its kitty.

“BSNL is maintaining a fixed wire line network with a large rural footprint and providing services in remote and far-flung areas.

It is important that this network is sustained and expands as fixed line operations in rural areas are crucial in the context of the information age and the need to facilitate the growth of broadband services. If considered justified, support can be given from the USO fund to the BSNL,” TRAI said.

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