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House panel suggests lowering of WLL rentals

BS Economy Bureau

The Parliamentary standing committee on information technology has suggested lowering of rentals for wireless in local loop to make the service more affordable, especially in non-metro areas.

The committee, chaired by Somnath Chatterjee, has pointed out that the rental for limited mobility services had been set at the floor price of Rs 450 and ceiling of Rs 550, against fixed-line rentals of Rs 450 for two months.

It has also compared the rates to those offered by full-fledged cellular service at Rs 399 per month.

The recommendations of the committee, though not mandatory, are expected to come as shot in the arm for basic operators who have been lobbying for lower WLL rentals.

In its report tabled in Parliament on Tuesday, the committee has observed that the matter should be taken up with the Telecom Regulatory Authority of India, which, in turn, is in the process of reviewing the minimum rental for limited mobility services, especially to ensure that the benefits of WLL reach rural areas.

"In view of the fact that affordability and availability of the service is of great significance in rural areas, the committee trusts that the TRAI will come out with a reasonable decision so that the purpose of launching the service is well served," the report says.

"The committee has reservations whether the service will be as popular in rural areas as it may be in metropolitan areas," it has noted.

The committee has also asked the department of telecommunications to consider "drastic steps" against private basic operators who are not fulfilling their rural telephony commitments. P>It has pointed out that "the increase in the number of subscribers, most of whom are from urban areas, cannot be construed as an achievement, as performance of private operators in providing rural telephony, especially VPTs, is far below the commitments made in licence agreements."

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