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TRAI open to reducing WLL rentals

Thomas K Thomas

The Telecom Regulatory Authority of India has clarified it is considering bringing down the rentals for WLL limited mobility. This is part of the tariff review exercise to be undertaken by Trai in May.

As regards alternative tariffs for WLL, Trai said the primary reason for not allowing alternative tariffs for WLL was that the cost-based nature of tariffs should not be diluted.

"Comparing it to cellular services and saying that it works out costlier for just a particular kind of users are not appropriate, " Trai said.

"Trai is aware of the falling prices of telecom networks and equipment. Considering this, it has decided to review the rentals for WLL mobility services every three years. The first review is due next month. If a reduction in rentals is justified because of the latest costs, it will be done," Trai said.

The regulator was responding to the department of telecom, the parliamentary standing committee on IT and telecommunications, consumer groups and basic operators which said that the high rentals set by Trai for WLL mobility services defeated the very purpose of WLL.

The government decided to allow basic operators to offer limited mobility services because they were affordable, they said.

Defending its earlier decision to set a monthly rental of Rs 450, Trai said the move was to ensure that no operator, particularly the incumbent with its overwhelming market power, resorted to predatory pricing to destroy competition.

However, basic operators pointed out in cellular services, only the new entrant resorted to predatory pricing, not the incumbent.

Responding to those who had requested a review in WLL rentals, Trai said, "A range of rentals has been stipulated, considering the cost of providing such connection."

It added that even as the introduction of WLL benefited consumers, providing such services at tariffs below cost was not feasible.

Basic operators, however, say that if alternative tariffs dilute their cost-based nature, they do so in the case of cellular services also.

"If cellular operators can have alternative tariffs in spite of their being cost-based, why can't WLL limited mobility?" said a basic operator.

But, Trai was of the opinion that there had to be a distinction between cellular services and WLL mobility. Basic operators should not use WLL to offer undue and unequal competition to cellular operators, Trai felt.

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