New telecom tariff to hit DTS revenue

SEPT 9: The Indian Telecom Services Association ITSA has claimed that the new tariff structure for basic telecom services announced by TRAI would reduce revenue collection of the Department of Telecom Services DTS by Rs 1,000 crore in the remaining six months of the current financial year.

Government has set an ambitious target of acheiving teledensity of seven per cent by 2005, with a teledensity of four in rural sector, which required massive funds and any revenue fall would affect the departments8217; plans, it added.

There was lack of cohesion between the government and the TRAI, ITSA said adding that the euphoria of reduction in rates and competition in long distance was only going to benefit the corporate users and that too would vanish soon. quot;It is the telecom sector and the masses of this countrywho would suffer in the short and long term,quot; it added.