News From Telecom World

Indian Authority recommends per second based mobile tariffs

Posted on: December 17, 2008

The Telecom Regulatory Authority of India, said that it was looking to move towards a tariff regime where mobile operators charge on a per second basis instead of the current practice of charging every minute. This will result in huge savings for mobile users who have to pay for entire minute even if they talked for just 20 seconds. Currently, the operators are charging on per minute basis.

The telecom regulator said that though mobile tariffs are under forbearance it will have to look at a per second pulse rate due to the operators not addressing the issue of calls dropping. “Consumers must get what they pay for. Given the frequent call drops we should perhaps have per second based pricing,” said Mr Nripendra Misra, Chairman, TRAI.

“I urge telecom companies to keep in mind the principle of forbearance. But forbearance has not been followed at times. I tell companies, please listen to our persuasion. The request on SMS has been pending with them for a year,” he added.

Operators are charging at a rate of Rs 1.20 per message and analyst believes that there is no cost accruing to the operator in providing this service. The regulator said that the operators should respond within a week by cutting SMS rates.

“I do not think TRAI needs to prescribe any new tariffs. We are already offering the lowest tariffs in the world. There are nearly 7-8 operators in each circle which makes it really competitive,” said Mr T.V. Ramachandran, Director-General, Cellular Operators Association of India.

Source: Wireless Federation

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