Dot To Ask Trai To Review Tariffs

The department of telecommunications (DoT) will ask the Telecom Regulatory Authority of India (TRAI) to review fixed-to-cellular call tariffs in the country. A review petition will be filed before the regulator in two-three days, telecom secretary A V Gokak said here yesterday.

The petition to be filed under Section 11(2) of the TRAI Act will seek the regulators guidance on the tariff. Under the Act, tariff-setting powers are vested with TRAI.

The decision to ask for a review reflects DoTs reluctance to appeal against the TRAI order on April 25 quashing the departments fixed-to-cellular tariffs and, at the same time, uncertainty regarding loss of revenues as a fallout of the order. The regulators order asked DoT to roll back the tariffs to the pre-January 29 level.

 

Gokak said there was no formally notified tariff for fixed-to-cellular calls before January 29 when DoT fixed it at a maximum of Rs 28 for a three-minute call. Prior to the order, he said, field officers of the department in good faith charged different rates to kick-start the fledgling cellular telecom industry.

We are not clear what the different rates in the circles were. So there is confusion about which (pre-January 29) tariff to go back to while implementing the TRAI order, a top DoT official said. The department has called a meeting of its field officers today to get a feedback on the exact tariffs in different circles before January 29.

Ruling out an appeal against the April 25 order of the TRAI that quashed the increase in fixed-to-cellular call tariff, Gokak said such an appeal against the very first judgment of the regulator could have sent wrong signals to foreign investors. If you want foreign investment, you cannot ignore the psychology of foreign investors, he said.

The purpose of setting up TRAI was to provide a mechanism for quick redressal of grievances, since litigation in courts can be protracted, Gokak added, pointing out that formation of the regulator was also one of the commitments given to the World Trade Organisation by the government. Unless inevitable, an appeal need not be filed, as it could have implications internationally, he said.

The department will soon start a dialogue with cellular operators on issues like interconnectivity to reach an amicable agreement, as directed by TRAI in a separate communication. The April 25 order had directed DoT to provide multi-point interconnectivity to the cellular operators mobile switching centres within 90 days of the request being received. However, Gokak said the department was still examining the matter and formulating a stand on it would take time.

The Telecom Commission has directed the department to begin an exercise to ascertain the loss of revenue estimated at Rs 2,000 crore due to the reversal of the fixed-to-cellular tariff. This will be quantified with the help of a survey among telephone users. An institution like the National Council of Applied Economic Research may be roped in to carry out the survey, Gokak said.

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