According to Mr S C Khanna, secretary, Association of Basic Telecom Operators (ABTO), "this is unfair and will hit the basic operators, whose networks are not big enough to cover the entire 200 km radius."

The basic operators have now appealed to the Telecom Regulatory Authority of India (TRAI) to intervene. In a letter addressed to the TRAI chairman, Mr MS Verma dated January 19, 2001, the ABTO has urged the Regulator to ensure that the benefit of concessional tariffs announced by BSNL a fortnight ago, be made available to the subscribers of the private basic operators also.

Bharti Telenet Limited, which operates the basic telecom services in Madhya Pradesh and Chhattisgarh has slashed its STD rates by up to 85 per cent for up to a distance of 200 kms, in a bid to combat the new concessional tariffs of BSNL, which will come into effect from January 26. As per the latest tariff plan, which will also come into effect from January 26, Bharti Telenet will charge Rs 2.40 per minute for calls from 200-1000 kms. As per new rates, AirTel has introduced two tariff plans - AirTel Standard and AirTel Special. All existing AirTel customers will be migrated to the Airtel standard tariff plan free of cost.

The Minister of Communications, Mr Ram Vilas Paswan had announced the reduction of call charges for BSNL subscribers on January 5, 2001. As a result, with effect from January 26, 2001, BSNL subscribers will be able to dial on local call basis for distances up to 100 km-implying a reduction in tariffs to 1/8th the original. Beyond 100 kms upto 200 kms, the tariffs have been reduced by half. However, the basic operators are incensed at the fact that the BSNL has issued instructions to its field units in a letter dated January 12, 2001 wherein it has clearly mentioned that "the revenue sharing arrangement for basic operators will remain at the standard rate as was being charged earlier." This, according to the ABTO, will compel the private basic operators to pay heavily from their pocket. The rationale for the argument: For a call of 2 minutes duration, for a distance of above 50 km and up to 100 km the subscriber will pay only Rs 1.20 to private basic operators, whereas the private basic operators with therevenue sharing arrangement of 60:40 on standard tariff as applicable before the concessional tariff, will have to pass on Rs 3.84 (1.20 x 8 x 0.4 = 3.84).

Thus, the private operators will incur a loss of Rs 2.64 per call. The ABTO, therefore, has asked the TRAI to help make the concessional tariffs uniformly applicable, adding that the revenue share for calls in the slab from 50 km to 200 km between private basic operators and BSNL should be Bharti Telenet slashes STD rates However, to avail the Airtel Special, under which a one-minute call to Raipur from Bhopal under AirTel Special tariff plan will cost Rs 2.4 in place of Rs 14.9, the customers will need to pay an additional monthly fee of Rs 100.