Monday, February 18, 2008

BSNL May Increase Fixed Line Tariffa

New Delhi: Bharat Sanchar Nigam Ltd has told the telecom regulator that it will be forced to hike tariffs for fixed line telephones in case access deficit charges are withdrawn. BSNL has cautioned that such a move could wipe out fixed telephone usage in the country as subscribers will prefer to take cellular connection. BSNL has told the Telecom Regulatory Authority of India that while operational expenditure per line per month for rural telephones comes to Rs 643, it recovers only Rs 171 per month per subscriber. To recoup a part of these losses, BSNL will have to hike rental, call charges and decrease free calls in respect of its wire line services, both in urban as well as in rural areas.

The TRAI had earlier said that ADC would be abolished by April 2008 on the grounds that BSNL had got enough support from the Government. Private operators, who pay the charges to BSNL, have supported the TRAI''s move. However, BSNL pointed out that, on one hand, it was not being permitted to fix the tariffs for rural fixed line telephones based on market conditions and on the other, the regulator was withdrawing the subsidy support for fulfilling social obligations.

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