Carriage cost to determine IndiaOne tariffs

New Delhi, Nov 18 | Updated: Nov 19 2005, 07:23am hrs
Department of Telecoms IndiaOne tariffs a single uniform rate between two circles will be determined on the basis of costs involved in the carriage. The determination of indiaone tariff rate, which would pertain to the inter-circle calls anywhere in India could be a single uniform rate irrespective of the distance slab and without zero dialling.

The determination of this rate could be on the basis of weighted average costs involved in the carriage, the draft new telecom policy says.

The licence would reviewed and amended in a way so as to allow every service provider in each service area to terminate the inter-circle calls of all its subscribers through the necessary arrangements, it said. Any call has three cost components origination, carriage and termination.

DoT has already permitted inter-service area connectivity within four states of Maharashtra, Tamil Nadu, West Bengal and Uttar Pradesh. To enable rapid spread of affordable services, it may be appropriate to extend this arrnagement to the enitre country, according to the draft. DoT is of the view that each service area has six to eight players resulting in intense competition and tariffs are much lower as against global benchmarks.

Currently the carriage cost component of the interconnect usage charges of national long distance tariffs are under trai regulation and there is Rs 1.10 ceiling on it.

Trai issued interconnection usage charges regulation on 29th october 2003 wherein it had specified cost based carriage charges ranging from Rs 0.20 to Rs 1.10.