
Consumer action on telecom hike begins
The new telephone tariffs which became applicable on May 1 have socked ordinary telephone users an incredible four blows 8212; a hike in rental charges from Rs 190 to Rs 250; reduction in free calls from 150 to 750; increase in call charges from Rs 0.80 paise to Rs 11.25 plus per call; and finally the reduction in call time from five minutes to three minutes. The last bit 8212; the reduction in call time alone is equal to a hike of anywhere between 268 per cent to 105 per cent calculated on the basis of 200 calls earlier to 1000 calls respectively.
Yet newspaper editorials have without exception focussed exclusively on the reduction in long distance and international call charges and have praised the TRAI8217;s new tariffs which benefit large corporate users. If individual telephone subscribers were outraged, then their ineffectual protests took the form of letters to the editor. The question is where are the consumer groups? The long silence of consumerorganisations reflects the state of consumer activism. Indian consumers, bred on subsidies are usually unwilling to be a part of the consumer movement, to demand their rights and make financial contributions to support the movement. Consequently, one or two committed individuals who do most of the work and have little money to pay costs usually lead consumer groups.That the protests of consumer groups against the telecom tariff hike have largely been ignored, even by the TRAI, is a symptom of this problem.
Consumer groups around the country are now getting together to step up the pressure and even file litigation. Last Friday, the Consumer Guidance Society of India, United Consumers of India and the Bombay Telephone Users Association called a press conference to voice their protest against the hike in telecom charges and to announce their plan of action which, if necessary includes litigation against the hike. A few days earlier, the Mumbai Grahak Panchayat which, with 18,000 members, is the largestvoluntary consumer organisation in the country, has written to the prime minister and the telecom minister protesting against the 8220;harsh and unjustified hike in telecom charges. The Grahak Panchayat, in its latest protest has focussed mainly on the incredible 265 per cent increase in tariff, through the reduction in the call pulse rate from five minutes to three.
Similarly the Consumer Education and Research Centre of Ahmedabad and other consumer groups which are part of the Telecom Users Group of India 8212; an all India body headed by former Videsh Sanchar Nigam Ltd. chairman T.H.Chaudhary have also protested against the hike. This group has pointed out, with statistics that 50 to 60 per cent of phone users have their STD/ISD facilities blocked and have no benefit from the cut in long distance charges.The TRAI proposal benefits a mere 0.5 million subscribers while it adversely affects a huge 17 million. All the consumer groups have essentially attacked a few main issues.
Consumer groups charge that thereduction in pulse rate per call from five minutes to three leads to the most extortionate increase in tariffs. The Grahak Panchayat calculates that a person, who made 200 calls at the pulse rate of five minutes, will now be billed for 330 calls, leading to a 265 per cent increase in costs. n While the government has exempted consumers making 200 calls from the hike in rental and call charges, it may amount to a fictitious concession. Consumers using the same talk time equal to 200 calls into five minutes will now be billed for a far higher number of calls at the three-minute pulse rate and get pushed into the higher rent bracket. It is also administratively absurd to say that a consumer who occassionally breaches the 200-call limit will not only pay a higher rent but also higher call charges for a particular billing cycle. Such consumers, and there is a huge number in this category, may simply prefer to surrender their telephones, since very few would prefer the alternative of fighting a governmenttelephone department. It is probably for the first time in India that corporate consumers and the affluent classes are given huge concessions, and ordinary users are socked with a draconian and extortionate increase in the costs. The huge profits and extraordinary operating margins of the MT NL has been questioned by consumer groups who questions the need for the hike in tariffs. The Mumbai-based consumer groups have pointed out that the declining trend in the cost of telecom equipment has changed the fixed cost structure of the bloated and overstaffed MTNL and DoT. They have demanded detailed working of the cost by these organisations, the exact subsidy element and the method of fixing tariffs. In fact, given the high profits of MTNL and DOT, consumer groups want to make a case of reductions rather than an increase. While consumer groups continue to look for support from subscribers in the form of time and money, one hope is that the BJP, which has declared that it is not leading a caretaker government,will ensure that this does not become an issue during elections. After all, its biggest support base is of shopkeepers and traders, and not all long distance callers.
Author8217;s e-mail: suchetadalalyahoo.com