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India: Telecom operators ‘cheating’ customers

The telecom regulator might have made an effort to cut the STD and ISD tariffs by removing ADC on per minute basis on domestic calls and by reducing ADC on ISD calls, but the telecom operators including the government-owned PSUs have selectively transferred the benefit only to those who are making voluminous calls.

At the end of the day, it is the telecom operators who are going to get the maximum benefit of the new ADC regime instead of most of the consumers — who are not opting for the much hyped “One India” plan.

According to the new ADC regime issued on 23 February by Trai, the collection of ADC on the basis of per minute has been removed, which was earlier Re 0.30 per minute on domestic calls.

For ISD calls, the ADC has come down drastically 65 per cent and 50 per cent for incoming and outgoing ISD calls.
Had this been transferred to the consumers, the normal STD tariff should have come down to Re 0.40 per minute at least, and for ISD calls also the tariff should have come down by about Rs 2 per minute. However, the benefit of this regime has not gone to 90 per cent of the consumers who are not opting for the much hyped “One India” tariff.

According to a rough estimate, out of 125 million telecom subscribers all over the country not even 10 per cent — 12.5 million would opt for the “One India” plan. This means that the ADC benefit on STD calls would be availed only by the 10 per cent subscribers, the share of benefit for the remaining 90 per cent would add on to the profit margin of telecom operators provided the STD tariff of a normal consumer is not reduced accordingly.

“But you cannot blame telecom operators for that, we are not stopping anyone from choosing one India tariff plan. The user will study the plan and opt for it accordingly. We have made calculations on certain grounds and are trying to play on volume. While we are loosing by offering Re 1 per minute on STD tariffs, we are gaining on the remaining connections,” said a senior officer of the MTNL.

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