For a subscriber, the main benefit is that the call tariff is charged at a 180 second pulse rate instead of the 36-second pulse for an STD call.This translates to a cost reduction by one-fourth for each unit of the call.Yet another benefit is that the facility is available to non-STD subscribers also on demand, while for those who alreadyhave a STD connection, the facility is automatically incorporated.

Tamil Nadu has 129 such SDCAs, all of which have this facility, where calls to neighbouring SDCAs will carry only a local call tariff. However, for calls between SDCAs which are not geographical neighbours, the tariff will continue to be that of an STD call.

For the telecom circle, the advantage is on better traffic management and possible increase in the volumes of calls. According to a senior department official, the STD calls are made at the times where there are concessional rates, that is between 7p.m and 8 a.m, where there are slab rates applicable. By introducing the local call access codes, the department hopes to spread the call times throughout the day. If the short distance STD calls can be spread through the non-peak hours even at local call costs which are significantly lower, the STD hours could be used for long distance STD and ISD calls which mean higher realisations for the department.

The department also hopes to setoff the loss in STD revenues by a possible increase in the number of calls made and higher realisations from long distance calls. Department officials say that with local access, the number of calls made to places in the neighbourhood areas will increase in frequency and hence set off at least a portion of the loss in revenue. The department has initiated a study on the pattern of revenue between August and September. The statistics say that while STD revenues remain more or less the same with very marginal downfalls in some areas and marginal increase in some others, the trunk call revenues have fallen by as much as 50 per cent in some areas, while other areas have also seen significant drop in revenues.

The department officials say that despite this pattern, the actual results can be measured only after at least a six month period to predict any actual loss. But according to projected estimates, the department is expected to make a Rs 170 crore loss in one year. With this kind of figures in play,officials are keeping close tabs on revenue patterns.

Industry watchers say that the department's initiative to introduce the local call charge for short distance STDs should be viewed with the proposal of statewide cellular networks to allow STD access at the charge of a local call for cellular subscribers in mind.