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Hands-off policy on cell tariffs

New Delhi, Jan. 13 (PTI): The Telecom Regulatory Authority of India (Trai) has decided to continue with the existing tariff regime, which allows operators to fix the charges for services, for the time being.

“Trai sought views of stakeholders on the need to review the existing regime of tariff forbearance. Taking into account the feedback received from stakeholders, the authority has decided to continue with the existing tariff regime for the time being,” Trai said in its annual report. The regulator had started the consultation process in February 2012 to review the tariff regime, which is under forbearance except for rural landline services, national roaming and leased circuits.        

Forbearance of tariff for a service means Trai has not notified any tariff for a particular service, and the operators are free to fix the price.        

The consultation paper was floated by Trai after firms increased rates for call and mobile Internet services in 2011.

Analysts were of the view that the apex court’s cancellation of 122 licences had reduced competition and could lead to an increase in tariffs.

 
 
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