India Mobile
Buy Mobiles, Cellphones
 |
 |
 |
 |
|
|
|
|
|
|
|
|
Merger of circles by BSNL may be the precursor of a single telecom tariff
Even A S Bharat Samachar Nigam Ltd (BSNL) recently merged telecom circles like Maharastra and Mumbai, the move focuses attention on the concept of a ‘national fair rate’ for mobile and fixed line calls. Currently in its infancy, the idea of ‘one India’ has many enthusiastic backers and equally vehement opposition within the telecom policy regulatory and service provider establishment.
Though there are a host of regulatory issues before such a proposal will ever see the light of the day. Communication Minister Dayanidhi Maran’s recent move to merger the circles has ignited a debate in various quarters, including BSNL. The country has already witnessed a sort of flat rate with mobile to mobile calls costing the same within a state (circle) boundary. Fixed-line Calls still the ‘local call area’ plus distance based long distance call charging pattern.
A senior BSNL official said that a flat rate proposal would involve settling many thorny issues. “In time the concept may be implemented. At this stage there is no proposal on these lines. Before thinking on these lines, we will have to look at the regulatory part, inter-connectivity, the interest of national long distance providers and the reduction in margins that this would result in”.
The last bit on margins is significant. The recent merger of four Circles will result in significant losses for BSNL, on account of reduced charges (however higher traffic may compensate). If calls from Kashmir to Kanyakumari are priced at a single rate, the margins available to all operators from long distance will fall sharply.
“The biggest loser of Maran’s decision is BSNL. Reliance and Bharti will also lose slightly. The recent decision was taken by the minister despite opposition from BSNL. If it is implemented, will local call rates go up? Is that possible, given the sensitivities involved? All this will have to be resolved first”, a senior industry official representing fixed line and an NLD operator said.
T V Ramchandaran, director general, Cellular Operators Association of India was more forthcoming. “I would welcome any such move. A vast country like the US has coast-to-coast one rate. Who can’t India allow this to happen as it will expand the market, increase affordability and lead to the death of distance?” he said.
While Ramchandaran believes that India should be one call area, this would also involve cellular operators being allowed direct connectivity between circles. This ‘handshake’ will come as a boon to firms like Hutch and Idea.
