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Local calls to be almost free
By    siliconindia news bureau
Wednesday, August 20, 2008
New Delhi: As Telecom Regulatory Authority of India (TRAI) has provided the right to offer voice services to Internet Service Providers (ISPs) the call tariff rates are expected to come down between 40 percent and 80 percent.

The average rate to call abroad is now Rs. 7 per minute which may drop to Rs. 1 or Rs. 2 and the national long distance rate and local call rates are also expected to come down by using internet telephone service.


When ISPs are offering calls on low tariff, mobile phone operators in the country may also force to reduce the rates. TRAI is also looking to review the interconnection cost (fixed tariff paid by an operator when he uses another operator's network for the customers), hence a further decline in the call tariffs is possible.

Moreover, Department of Telcom (DoT) has welcomed the move. "TRAI deserves credit for a wonderful job. We welcome any step towards liberalization and deregulation and are happy to embrace this recommendation," S Behura, Secretary, DoT, told to The Times of India.

At the same time, the GSM operators are not in a position to welcome the move. The Cellular Operators Association of India, COAI, mentioned that the move has violated level playing field issues as mobile operators pay a considerably higher entry fee compared to ISPs.

But when taking the huge consumer benefits, the opposition of GSM operators may not have an impact on TRAI's move.

     
   
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Reader's comments(14)
1 It will be excellent to pay some fixed amount per month and make unlimited
communication all over the country irrespective of type of technology used, the
provider company and the mode of talking or hearing. This will finally reduce
the constant wasteful efforts on both consumer and provider side. Only the
quality competition will exist and it will exponentially develop this basic
amenity.
Posted by: Dr. Navin Aggarwal
2 this is a very good news .... this should be encouraged... like this we should
think in different manner to reduce cost of our basic needs like food and other
things....
Posted by: arun
3 Just think that how much these cellular operators were making profit for so many
days....
Posted by: CHIRANJIT
4 Another service that is important to exist and have is the GPS (Global
Positioning System). I have seen GPS units being sold in Bangalore. However I
have not used it. This will help people to travel with ease and not loose their
way.
Posted by: Satish M S
5 This is a great step towards leveraging technology and making it available to
the public. This should have happened long ago. In fact the basic phone service
in the US has been VoIP for many years now. All the services - VoIP, Cellular,
PSTN should continue to exist in parallel and the service providers will have a
chance to provide great service when they compete with their peers.

This will enable customers to choose the best service that suits'em.

Thanks,
Satish M S
Posted by: Satish M S
6 Good to hear such news from TRAI.. Some cellular operators have costs more
things not only in cell charges but also some indirect charges in many schemes..
Aircell is one of the worst to charge like this with out the new schemes for
their customers. TRAI should control over these cellular operators and satisfy
the customers needs.
Posted by: kamal
7 A Good move--A bold and clever decision when Manmohan singhji was the finance
minister and Rajiv pm that globalisation is the key for development and we
see the fruits of it today withn cell phones in place of roatry dialled
phones
Can we expect more globalisation and privatisation which alone will make India
a develped country in par with US
Posted by: esbee
8 This really is huge, this will do wonders to both business and home users, less
costs, better operational margins, plus a 1Rs call will definitely increase the
over all volume as it did with domestic STD calls.

Bravo India a nice move towards development. Wish our transportation ministry
took a clue from TRAI's and DOT's book too!!
Posted by: Akhil
9 its a good TRAI's move. but when this thing will be implemented
Posted by: shahnawaz
10 This will bring huge competition in the market. Imagine IT/BPO will be using
the same for domestic communication there by operational cost. Secondly It will
enable home based users to contact and thus Like US work from home culture can
be cultivated.

Ashish
ValueFirst
Posted by: Ashish Nigam
11 with this introduction, im sure it would be a great relief for every common
man..
Posted by: jaydeep
12 Wow, amasing and wonderful decision. I am a NRI and this move will bring in the
families of millions of NRI closer and improve their virtual familiy life.
100 M.B. Thanks.
Ravi
Posted by: bravichandran
13 HEALTHY COMPETITION "ALWAYS WEL-COME", in any field.
Posted by: Mohan.Dudani
14 It is going to help many of the startups as well as MNCs in cutting their cost.
Posted by: Sohail