With consumers and operators expressing unhappiness over the telecom regulator's decision to increase telephone tariffs, cellular and basic service providers are meeting over the next couple days to draw up a plan of action.

While basic operators are complaining of having to charge their consumers more, cell operators say that they face a revenue loss of around Rs 2,000 crore (Rs 20 billion) for providing free incoming calls.

Industry sources said while the Cellular Operators Association of India had called a meeting of its members on Monday, the Association of Basic Telecom Operators would take up the matter on January 29, at its annual general body meeting.

"Given the loss to our  consumers and to the industry, we have to decide whether we should challenge the Telecom Regulatory Authority of India's (Trai's) order or accept it and let market forces determine the future course," said an cellular industry representative.

However, independent analysts pointed out that the regulator has done a balancing act. “The fixed-line tariffs were bound to be increased as they were being offered as a subsidised product. To compensate for that, the long-distance tariffs have been brought down.

"Cellular operators have got what they have been demanding -- an access charge from limited mobility operators along with the calling-party-pays regime. While revenues of basic operators may be hit by the access charge, they will be compensated by the hike in monthly rentals and call charges.

"Both cell and basic operators will also get additional revenues from the termination and origination charges from long-distance calls, "an analyst said.

Trai on Saturday had issued a revised tariff order for fixed-line phones, cellular services, limited mobility services and long-distance calls. As per the new tariffs, fixed-line phone subscribers in urban areas will have to pay 8-12 per cent higher rentals. The duration of a call has also been brought down from three minutes to two minutes.

The number of free calls has been cut from 60 to 30 in urban areas and from 70 to 50 in rural areas.

For mobile subscribers, all incoming calls on a cellular network have been made free. Trai also set a ceiling of Rs 8.40 on domestic long-distance calls, which means the rates will come down from the current peak of Rs 9 a minute.

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