TRAI lowers roaming charges for calls, SMSs - Angel Broking

Telecom regulator TRAI announced reduction in the national mobile phone roaming charges, but said there will be no free national roaming as of now, in a partial relief to operators, some of whom had opposed a proposal to completely abolish roaming charges. The sectoral regulator has also come out with conditional free national roaming plans, a move that will bring down cellphone roaming charges. The changes will come into effect from next month. TRAI has reduced ceilings for national roaming calls and SMS and instituted a new regime for providing flexibility to telecom service providers to customize tariffs for national roamers through Special Tariff Vouchers and Combo Vouchers. It has also mandated two types of free national roaming plans to be provided by all telecom service providers. These changes will come into effect from July 1, 2013. The ceiling tariffs prescribed by TRAI in 2007 were Rs. 1.40 per minute for outgoing local calls and Rs. 2.40 per minute for outgoing STD calls while on national roaming. These ceilings have been reduced to Rs. 1 per minute and Rs. 1.50 per minute, respectively. Similarly, the ceiling tariffs for incoming calls while on national roaming have been reduced from Rs. 1.75 per minute to 75 paise per minute. Tariffs for outgoing SMS while on national roaming, which were earlier under forbearance, have now been capped: outgoing SMS (local) at Rs. 1 per SMS and outgoing SMS (STD) at Rs. 1.50 per SMS. Incoming SMS will remain free of charge.

TRAI has also mandated the service providers to offer special plans for roaming subscribers in which subscribers can avail of partially free roaming, or fully free roaming in lieu of payment of fixed charges.

The present exercise to review national roaming tariffs was initiated by TRAI earlier this year in the context of decline in costs and the declared intent in the New Telecom Policy-2012 to move towards One Nation-Free Roaming throughout the country. The present exercise to review national roaming tariffs was initiated by TRAI earlier this year in the context of decline in costs and the declared intent in the New Telecom Policy-2012 to move towards One Nation-Free Roaming throughout the country. We currently maintain our Neutral view on the overall telecom sector.

Source : Equity Bulls

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