Zero-Dial Access Short-Circuits Cellular Operators

The business plans of cellular telecom operators have taken another beating with the department of telecommunications (DoT) deciding to introduce a zero-dial access for calling cellular numbers in all its exchanges in the state circles.

This means that DoT subscribers will need to dial zero while accessing a cellphone user. But some 40 per cent of telephones on DoT networks are STD (subscriber trunk dialling)-barred, which disallows zero-dial access.

Therefore, the STD-barred telephone subscribers will effectively be unable to make calls to cellphones.

However, callers in metros will not face the same problem as the zero-dial access will not be introduced in metros.

The turnover projections of cellular operators are likely to take a battering once all DoT exchanges in the state circles introduce the zero-dial access for calls to cellphone numbers. There is no need for DoT to impose such a rule.

If the intention is to make fixed-to-mobile call billing easier, this is certainly not the way to do it, a basic telecom company executive said.

DoTs latest move follows its decision late last month to raise the tariff on a three-minute call from basic networks to a cellular phone from a maximum of Rs 1.25 per call to Rs 28 per call. The decision was taken to ensure fairness to DoT subscribers and not allow cellular operators to bypass the DoT network for long-distance calling, department officials had averred.

However, the decision came as a shock to cellular operators. The tariff hike itself has upset all our financing plans. On top of that, the zero-dial access is a killer, the executive added. Companies had expected at least 40-50 per cent of their revenues to come from calls made from the basic telecom network to their cellular subscribers.

The Cellular Operators Association of India has already challenged the move to increase tariffs in the Delhi High Court.

The operators have contended that DoT should not be allowed to take a unilateral decision since it affects consumers across the country.

Arguing for a deferment of the decision, the operators have requested communications minister Beni Prasad Verma to allow the proposed Telecom Regula-tory Authority of India to decide on the matter.

One of the main functions of the regulatory body would be to set tariffs. Logically, even if such a decision is to be taken, it should be the one doing it; not DoT, the executive said.