This review is on the impact of recent TRAI directives on the call cost for the common man that will be applicable from April 1, 2003 :
- Local Call Landline Charges : Local call costs are set to skyrocket from April 1 if we were to go by the TRAI’s Directives. This is how –
(a) Up to now, the charging was based on calls of 3 min i.e. the pulse rate of 3 min.
But now it will fall to 2 min without corresponding decline in the cost !
That means earlier we paid 1.20 / 3 min…..and now 2.40 / 3 min
So, this effectively doubles the cost for calls of 3 min.
Now let us consider the cost for 800 local calls per month on landline :
Earlier Now
Rs. 320 Rs.480
(b) Rent is suppose to rise from 250 pm to 280 pm
(c) Free calls are to fall by half
Justification by TRAI : Since average calls are for 2 min, it wont have an impact.
Is the justification valid :
- How much would it cost for a call for 2 min and 1 sec ?
Ans : Double – 2.40
How is the hike in rent justified ?
How is the reduction in free calls justified ?
Cool Fact :
BSNL is the top profit making public sector co in the country, beating even the oil major like ONGC !!..........with MTNL as 6th most profitable co in India !
So why are these charges hiked ?.......Well this question can be best answered by TRAI itself…….But we do have mind of our own to at lest assess its impact !
P.S. : It is still unclear what will be the impact of all this on dial-up internet cost !
- Cell/WLL to Landline and Landline to Cell/WLL Cost :
Things have become pretty much bad from April 1 as the new IUC( Interconnect Usage Charge) regime comes into force……Popularly called ‘Access Charge’
Untill now, a person on a landline calling a Cell or WLL had to pay only MTNL/BSNL at 1.2/ 3 minutes.
But now he has not only to pay MTNL/BSNL but also to the cell co to whom he calls !!!!
How ?.......Like this :
For every call from Landline to Cell/WLL , a landline user will pay, additional, 30 ps a minute to the cell co……Thus there is additional burden on landline user !
There is this apparent discrimination…..Landline to Landline 1.2 / 2 min……….But Landline to Cell / WLL …….1.2 / 2 min + 0.3 / 1 min !!!!!!!!
This additional charges i.e. access charge will also be payable for Cell/WLL to Landline !!
Up to now for a 3 min call from cell/wll to landline costed :
Airtime (Hutch/BPL/Airtel ) : 7.80 (1.30 x 9) + 1.20 (PSTN)
Now,
Airtime (Hutch/BPL/Airtel ) : 7.80 (1.30 x 9) + 1.50 (PSTN)
This impact of additional access charge is tremendous on WLL users , eg : Reliance consumers !!
Earlier : 40 ps / 1 min
Now : 40 ps / 1 min + 50 ps / 1 min
( Therefore a 1 min local call from Reliance – MTNL/BSNL will rise from 40 ps to 90 ps)
This is an increase of 125 % !!!!
Moreover, a WLL to Cell call cost will also rise :
Earlier : 40 ps / 1 min
Now : 40 ps / 1 min + 30 ps / 1 min
( Therefore a 1 min local call from Reliance – Cell will rise from 40 ps to 70 ps)
This is an increase of 75 % !!!!
From the above analysis, it is clear that call cost for all user, landline user, cell user, WLL user will rise from 1st April ………courtesy TRAI !!
WHEN CELL COMPANIES WERE CRYING FOUL, CITING ABSENCE OF LEVEL PLAYING FIELD VIS A VIS THE ACCESS CHARGE THAT WAS PAYABLE ON CELL-LANDLINE CALLS AND NOT THE OTHER WAY ROUND, THE TRAI, INSTEAD OF DOING AWAY WITH THE ACCESS CHARGE REGIME, UNIVERSALISED IT !...TO THE DETRIMENT OF CONSUMERS AND TO THE BENEFIT OF PHONE COMPANIES !!
THIS RAISES A SERIOUS QUESTION…….IS THE TRAI WORKING FOR THE BENEFIT OF CONSUMERS OF IS IT WORKING AGAINST IT ?
In telephone scenario, where all phone companies have a supreme objective of profit making ( or shall I say super profit making ), TRAI was the only non-profit making entity to whom the consumers looked to for protection of their interest. And when even it gives preference to corporate interest over consumer interest, it could be its undoing !
We hear big talks about telecom revolution and tele-density and what not !
How are we to become the economic superpower when our fundamental infrastructure cost is ARTIFICIALLY raised, without reason, when world over it is falling !
Perhaps this is the reason that a country like China that, has a population greater to ours is making progress in leaps and bounces , leveraging its massive population !!
The Mobile connections in that country far surpasses that of India, once again thanks to our faulty policies and narrow interests ! - India 10 million ; China 200 million ( India a democratic, more capitalistic economy….China - a communist nation )
Have we achieved even 5 % of our potential ??????
How are we to realise our dreams of a strong nation with little or no rural – urban disparity, how are we to close that digital divide when TRAI choses to multiply it !