Deregulate interconnect carriage cost: MTNL to Trai

MTNL today said it will approach the Telecom Regulatory Authority of India (Trai) to deregulate the carriage cost component, which is part of the interconnect usage charges for long distance calls.

This could reduce STD tariffs between Delhi and Mumbai. At present, STD calls between the two metros are charged at about Rs 2.20 per minute.

Telecos are at present paying a carriage charge of a maximum of Rs 1.10 per minute to National Long Distance Operators for carrying the calls.

According to MTNL executives, Trai, while issuing the Interconnection Usage Charges (IUC) regulation in October, 2003, had said that "forbearance for carriage charge for long distance calls will be introduced once carrier selection by customer is implemented".

Executives from the PSU also said that MTNL would soon ask Trai to issue a circular stating that the Rs 1.10-ceiling be deregulated, in order to reduce the NLD tariffs.

They also said that any reduction in tariff would be passed on to the customers. Trai officials said the issue would be considered but not in isolation as IUC must also be examined before issuing a decision.

As per the current IUC regime, the retail tariff should be equal to or higher than the sum of IUC charges payable for origination, carriage and termination of a call. Besides, NLD operators can offer only a 10 per cent variation from the tariffs specified by the regulator.