Fixed-To-Cellular Tariff Proposal To Be Reviewed

A solution to the impasse between cellular operators and the department of telecommunications (DoT) over the latters move to hike tariffs for calls made from basic telecom networks to cellular subscribers appeared in sight, after communications minister Beni Prasad Verma assured the companies that a full study would be undertaken and the matter reviewed in detail.

This assurance came after the Delhi High Court rejected an interim stay plea by the Cellular Operators Association of India against the DoT move. Further, the ministers promise that the matter would be referred to the Telecom Regulatory Authority of India (TRAI), if necessary, was welcomed by the cellular companies. Rejecting the cellular operators plea earlier in the day, Justice C M Nayar set April 3 as the next date for hearing of the case. The rejection of the stay plea came as a shock to the cellular companies since the DoT order increasing tariffs comes into effect from February 15.

 

Representatives of cellular companies were hopeful of getting an extension of the notified date soon. This followed assurances from government and DoT officials at separate meetings that an extension would be granted.

Verma had, however, not cleared the extension of the notified date until late last night.

Cellular Operators Association of India representatives met Jairam Ramesh, adviser to the finance minister, after the high court rejected their petition. The meeting was described as fruitful. Following the meeting, finance ministry officials are reported to have impressed upon their counterparts in DoT to extend the notified date.

DoT had decided to impose a maximum of Rs 28 per three-minute-call tariff as different from Rs 1.25-per-call at present on January 29. The decision came as a bolt from the blue for all cellular operators. It upset business plans and valuations because some 40-50 per cent of revenues was expected to come from calls made from the basic telecom network to cellular subscribers.