Phone tariffs may fall by 30-40%, says Baijal

Call US for just Rs 4.65-Rs 5.92/min.

Phone call tariffs may drop 30-40 per cent following the proposed cut in the subsidy given by the government to fixed line telephone operators, Telecom Regulatory Authority of India (Trai) Chairman Pradeep Baijal said today.

Trai is expected to submit its report on Tuesday on a reduction in the access deficit charge (ADC) given to the Bharat Sanchar Nigam Ltd for providing services in the rural areas. "We have a tremendous opportunity of reducing the ADC without hitting the fixed line operators because of enhanced growth," Baijal said.

"I still have to convince my members to accept my proposal to cut ADC. But we must reduce ADC and thereby bringing another round of fall in tariffs," Baijal said.

At present, a call from BSNL network to the US costs Rs 7.20 per minute, of which Rs 4.25 per is the ADC. Under the new regime, with a 30-40 per cent reduction, the call cost could range from Rs 4.65 a minute to Rs 5.92 a minute.