DoT proposes to simplify telecom tariffs, proposes one nation, one market policy
22 Jul 2011
The department of telecommunications (DoT) has proposed to simplify the billing structure scheme, with the telecom licencor suggesting a single tariff for each operator, mobile number portability (MNP) and discontinuing roaming charges.
At present, the country is divided into 22 circles, with each circle having its own tariff structure. MNP, too, is allowed only within a circle, while users have to pay a roaming fee for using telecom services outside their home circles.
The proposal to do away with roaming charges was also floated last year. Telecom companies, already reeling under low tariffs due to tough competition, are expected to oppose the proposal as it would lower their roaming revenues, according to a report in Business Standard.
The proposals have been mooted by the various committees set up by DoT to finalise the new telecom policy.
The DoT committees have also pointed out that the use of spectrum should be service neutral. This means that spectrum being auctioned should not be linked to a particular service and operators should be free to use it for any service (2G, 3G or 4G among others).
To support the plan, the committees have mooted a nation-wide call centre and a number for emergency services, akin to the 911 service that can be dialled from anywhere in the US. It has also suggested that access to broadband should be made a fundamental right.
DoT is in the process of formulating a new telecom policy due to the controversy over allotment of 2G spectrum. After the resignation and arrest of former telecom minister A Raja in the 2G case, the new minister, Kapil Sibal, announced the government would come out with a new policy.
The policy is expected to lay new norms for mergers and acquisitions and spectrum allocation. It will also seek to enhance rural coverage.
