The new tariff, proposed in two years of setting up of TRAI, is likely to come into effect from April 1 after the official gazette notification, expected later this month.

The tariff was arrived at after prolonged consultations held by TRAI with operators, consumers and the parliamentary standing committee on communications.

A number of rationalisation measures are expected in the new tariff bringing the rural and urban consumers on par in different aspects. These measures are expected to remove the cross subsidy currently offered to rural subscribers at the expense of urban phone users.

The number of bi-monthly free calls is expected to be made uniform for rural and urban users against the existing pattern of up to 150 free calls in urban areas and 250 calls in ruralareas, while increasing the rentals over 100 per cent.

Long distance callers would benefit much from the new tariff with the removal of cross subsidy. The consultation paper had proposed four slabs with Rs 0.43 per minute for up to 50 kms, Rs 3.90 for up to 200 kms, Rs 9.75 for up to 500 kms and Rs 19.50 for above 500 kms.

However, the proposed tariff is understood to have pruned down taking into account the recommendations of parliamentary consultative committee on communications.

The consultative paper released on September 9 had proposed charging local calls both in rural and urban areas at a flat rate of Rs 1.30 after adjusting for 120 free calls bi-monthly. Monthly rental is proposed to be increased to Rs 120 from Rs 50 in rural areas, while for non-rural areas the tariff is proposed to be in the range of Rs 160 to Rs 310, up from the prevalent Rs 75 to Rs 190.

For the international calls, TRAI proposed a tariff cap of Rs 19.50 per minute in case of Saarc and other neighbouring countries, Rs 30for countries in Africa, Europe, Gulf, Asia and Oceania and Rs 39 for countries in the American continent and other places in the western hemisphere.

For value-added cellular, TRAI had proposed cutting down call charges with a cap of Rs 6 per minute from a peak of Rs 16.80 while suggesting an over 200 per cent increase in rental at Rs 600 per month as against Rs 156 now.

After releasing the consultative paper, TRAI invited comments from interested parties and has received suggestion from 121 sources till the last date on October 21.