T V Ramachandaran, director general of the Cellular Operators Association of India, has said that the cell phone operators would lose Rs 400 crore (Rs 4 billion) per year due to slashing of long-distance call rates on Thursday.

Speaking to rediff.com, Ramachandaran said that the net collection of all the cell operators in 2001 was to the tune of Rs 5,000 crore (Rs 50 billion) and they incurred a loss of Rs 800 crore (Rs 8 billion) on account of lower tariff.

"We want a level playing field with others who are offering WLL service at cheaper cost," he said.

Asked how much revenue did they generate on cell-to-cell long distance call, Ramachandaran said that this was to the tune of Rs 600 crore (Rs 6 billion).

"This is about 10 per cent of our annual turn over. By cutting the costs on distance beyond 50 kilometers we would lose Rs 400 crore (Rs 4 billion) on long-distance calls," he added.

Sunil Mittal of Bharti Telecom clarified that the customers would have to pay charges for long distance call from cell to fixed line.

"In addition to Rs 2.99 per minute call, the customers would have to pay the air time charges as well. There is no change in this. Even at present while paying Rs 9 per minute on long distance call the customers are paying the actual air time charges," he said.

Ashim Ghosh of the Hutch said that there was no question of offering free incoming calls.

"There is a mistaken notion that world over the incoming calls are free. We are not making any such offer for the time being," he clarified.

Cell users were upset with the offer of the cell operators.

"Barring businessmen who have business interests in different cities, how many long-distance call does a general cell user make in a day? The offer of the cell operators is hardly exciting," said an angry photojournalist who had come the press meet of the cell operators with big hopes.

"These people have planted stories in newspapers offering all kinds of incentives. What is more annoying is that the Minister of Telecommunications Pramod Mahajan has refused to bring down the charges of fixed lines given to 40 million telephone users. He is killing his own ministry's outfits," charged another scribe after the meeting.

Sunil Mittal of Bharti Telecom set the tone for the press conference by saying that the media has turned up in good strength hoping that the cell operators would go back with 'nothing on them.'

"I can tell you that this is not going to happen," he added.