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Cap on roaming tariff `a last resort'

TRAI recommendations by end-January


  • Telcos want current system to continue
  • TRAI keen on number portability

    NEW DELHI: Faced with a total opposition from mobile operators on reducing roaming tariffs, the Telecom Regulatory Authority of India (TRAI) on Tuesday said it might enforce a regulation for the purpose but would first explore all options to arrive at a solution.

    "They (operators) have expressed a point of view. I think there may be a counter point of view, which will also be shown to them... The best approach will be a resolution, which is acceptable to all. So we must try up to that point before a regulation comes into the picture... The regulation should be the last resort,'' TRAI Chairman Nripendra Misra said after an open discussion with all stakeholders on the issue.

    He said TRAI would again discuss the matter with the Cellular Operators Association of India (COAI) and the Association of Unified Service Providers of India (AUSPI) to reach a resolution and the recommendations for the roaming tariff review are expected by the end of this month.

    Mr. Misra, however, seemed to agree that it would be difficult to make the operators agree to a further ceiling on roaming tariffs.

    Asked if TRAI would impose a regulation in case the operators did not agree to reduce the roaming tariffs, he said: "Today we have got their response and we will find out a way how we can move forward to discuss the matter with them. There is already a regulation. Operators are asking to do away with the ceiling and let this be part of forbearance. So they want a further approach of deregulation which in all regulatory regimes are possibilities. But all this must address affordability and consumers.''

    TRAI has proposed to revise the existing roaming tariff by fixing a ceiling based on usage. This means there would not be any rental charges but only a composite roaming tariff on a per-minute basis. The TRAI Chairman also said number portability was necessary for greater competition.

    "The recommendations (on number portability) are with the Communications Ministry and we are awaiting its final decision on the matter,'' he said.

    On the issue of roaming tariffs, COAI and the AUSPI have opposed the TRAI proposal to slash these charges, saying market forces, and not the regulator, should determine the roaming tariffs.

    All telecom companies, including BSNL, have also demanded they should be allowed to continue with the current system, where the outgoing SMS (while on roaming) attract a higher tariff.

    However, Bharti Airtel has said the move to set a ceiling for national roaming charges could lead to an increase in the overall tariffs.

    Moreover, operators say any attempt to regulate the tariff of a small fraction of the overall usage would force operators to revisit their customer tariffs at the higher side, which will affect the masses.

    The Tatas have also said the fixation of tariffs, including roaming tariffs, should be left to market forces.

    Besides, operators such as BSNL have justified the need to charge higher tariffs for SMS on roaming. Since the SMS while roaming involves signalling network and the expense on clearing house service, it should be treated differently from those sent by subscribers in home circle, BSNL said. — PTI

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