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The Telecom Regulatory Authority of India is set to clamp down on varying Internet tariffs, following announcements on rate cuts by prospective Internet service providers.

It is likely to suggest that the rates charged by the Videsh Sanchar Nigam Limited should apply to all ISPs until the pricing for the service is finalised, according to officials.

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TRAI Chairperson Justice S S Sodhi has been quoted as saying that they are likely to take up the issue of uniform pricing with licensed, prospective ISPs next week.

TRAI's attention was drawn to the issue when soon after the Internet licensing guidelines were issued by the Department of Telecommunications, the prospective players began announcing relative price bands for their services.

The announcement from Mahanagar Telephone Nigam Limited that it would offer extremely competitive rates came in for special attention, especially because the operator had indicated that it would bundle dial-up rates with Internet access charges to offer a competitive service.

Such bundling is likely to be frowned upon by the TRAI.

The authority is clear in that the operators cannot begin to notify rates before consulting with it or before it finalises the tariff guidelines for the service.

The telecom pricing paper is currently being discussed at several centres across the country and TRAI is slated to notify tariffs for all telecom services early next year.

It would, therefore, like ISPs to wait until then before finalising rate cards.

In the tariff paper, TRAI has suggested two kinds of pricing strategies for the service: the first, under which there would be no price regulation for all operators, and the second, under which there would be a price cap for those operators with their own network.

Until the pricing policy for the service is finalised, the regulatory authority is likely to suggest that all operators stick to the VSNL rate card as a benchmark. VSNL charges Rs 10,000 for 500 hours of access.

- Compiled from the Indian media

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