Following concerns expressed by telecom operators, TRAI has refrained from mandating a per-second billing model. It has instead proposed a consultation paper to examine whether operators can be directed to offer at least one tariff plan based on per-second billing. The paper is due at the end of 2009.
TRAI was earlier planning to replace the pay-per-pulse billing (60 seconds in this case) scheme with per-second billing, which enables customers to make local and STD calls on any network in India at Re 0.10 per second. However, several operators protested that they were already experiencing low ARPUs and per-second billing would adversely impact future revenue sustainability. Operators like Bharti Airtel and Vodafone also asserted that tariffs and pricing should be left up to market forces as this has always been the case and has been most beneficial.
The per-second billing introduced under the “pay as you talk” scheme was kicked off by Tata Teleservices Limited when introducing TATA DOCOMO GSM services in the country. It is now being offered by Idea Cellular and Sistema Shyam TeleServices Limited as well. The move, though estimated to impact operator revenues by 10-15 per cent, makes good business sense, as it helps increase customer acquisition in the circles in which these players are new entrants. Meanwhile, Reliance Communications (RCOM) and Bharti Airtel have also launched competitive tariffs. While Bharti is offering local and STD calls at Re 0.50 a minute to any Airtel network, RCOM has reduced all local and national call rates to Re 0.50 per minute across networks.
Meanwhile, TRAI is looking to bring in greater transparency in mobile tariffs. It intends to ask operators to do away with all hidden charges in their tariff plans. All in all, this is good news for users who can look forward to not only competitive pricing options but also a wide array of mobile services.
