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Monday, October 5, 2009

Per second billing by all mobile operators

Good News for Mobile users!
 Doesn't this mean every operator will have to opt for per second billing?

In a move that could potentially reduce call charges, the Telecom Regulatory Authority of India (TRAI) is planning to make the one-second pulse a mandatory tariff option for all operators.

The move will benefit consumers because it will reduce the 'wastage' per call, which some telecom companies put at about 18 percent, reports PTI. Currently, most telecom companies fix the minimum pulse rate at 60 seconds. "We may ask all operators to consider the per-second pulse as a mandatory tariff option along with their other tariff plans," said TRAI Chairman J.S. Sarma.

Analysts say that the change would make tariffs more transparent since consumers will pay only for as many seconds as they use. "On average, consumers do not use 15 to 20 seconds of a call but pay for it because of the one-minute pulse rate. A per-second pulse would mean they would save," said Romal Shetty, Telecom Analyst with consultancy firm KPMG.

Sarma said TRAI will soon come out with a consultation paper on the subject. "Even in the per-second tariff plan, operators must ensure that all the riders and caveats are clearly brought out," Sarma added. Some telecom companies have already launched the one-second pulse rate plan. In Tata Docomo's case, for instance, the move has helped the company build a subscriber base of around seven million since it launched the mobile services three months ago.

Last week, state-run Bharat Sanchar Nigam (BSNL) launched the one paise per second pulse (for local calls) and two paise per second pulse (for national long-distance calls) in Karnataka, Andhra Pradesh and Orissa. Telecom operators, especially incumbents, may see average revenue per user (ARPU) and revenues falling as a result of this new stipulation.

Courtesy: SiliconIndia

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