Long distance rates are likely to see massive reduction with Bharat Sanchar Nigam all set to announce fresh rates under the uniform STD tariffs - IndiaOne - where a reduction of 70 per cent is likely to take place for the telephony segment.

The IndiaOne Uniform STD rates, which are likely to be announced by January 15, will come before the announcement of revenue-share based access deficit charge and will set in motion the PSUs' tariffs aligning themselves to this grand initiative of telecom minister Dayanidhi Maran who sees a single rate for STD across the country as the way to bring affordability in this segment.

This will put to rest speculation on delay in launching IndiaOne tariffs by telecom PSUs.

Sources in BSNL said OneIndia rates should see enough reduction in mobile STD also.

About 7.5 crore 75 million) mobile users too can look forward to a major cut in their STD bills this month, as the government is likely soon to approve collection of a fee (Access Deficit Charge) from telecom operators based on revenue-share mode instead of a fixed amount.

The revenue-share percentage is likely to be less for national long distance calls compared to international long distance calls, which would allow operators to cut STD tariffs.

The new ADC regime is ready but will only be announced after Department of Telecom gets a go-ahead from the Prime Ministers' Office which is expected this month. Telecom regulator TRAI will announce the revenue-share based ADC rates.

At present, BSNL (landline) call charges for distance beyond 50 kms is Rs 2.40 for a 30 second pulse rate effectively making Rs 4.80 for a minute inter-circle (STD) call for its basic telephone users.

Intra-circle rates below 50 km is also charged at Rs 2.40 but for a 90 seconds pulse. For Cellular users of BSNL, under various Plans there are different STD rates for a 60 second pulse.

Under Plan 225, the cell-to cell STD rates are Rs 2 a minute for a 60 second pulse while under Plan 325 and Plan 525, it is Rs 1.80 for the pulse for same duration.

Officials also said rentals were to remain at the same level and there is no change on rental as well as on local call fronts.

Mobile users never had it better

Highly placed sources said the entire amount of ADC will be kept at the same level of about Rs 5,000 crore (Rs 50 billion) and the current ADC accrued from ILD calls standing at Rs 2,000 crore (Rs 20 billion) would be retained at the same level too.

This rules out any scope for reduction on ILD rates. But STD calls would be expected to fall as the revneue share will be lower on such calls.

The current mobile STD rates by private players are Rs 2.65 a minute while telecom PSUs are offering maximum at Rs 2.40 a minute.

The new ADC regime will move from a fixed charge of 30 paise/minute for STD calls and Rs 2.50/minute and Rs 3.25 for ISD calls (for outgoing and incoming calls respectively) to a revenue share percentage for all local and international calls.

The new ADC regime also proposes a differential revenue share for local, national and international calls.

ADC is a fee private operators pay to telecom PSU BSNL to keep fixed line and local call tariffs affordable in rural India.

The private sector has long been demanding its abolition saying they were funding competition through this subsidy. The current regime, which charges ADC on a per call basis, was giving scope for misuse of ADC on incoming ILD calls, they contended.

Reliance [Get Quote] calls at Re 1 per minute

Anil Ambani-owned Reliance Infocomm has already announced the first telecom operator to launch IndiaOne tariff "OneNation, One Tariff" plan offering STD call anywhere in the country for just Re 1 per minute breaking the circle barrier.

IndiaOne was supposed to come into effect from January 1 but could not be launched and according to sources deliberation were on to work out a tariff plan. It may be in the form of two tariffs -- one for local and one for STD calls across the nation.

The OneNation Tariff of Reliance Infocomm is applicable on e-recharge of Rs 1,100, inclusive of service tax. Similar plan is available for the postpaid subscribers on New Joy 499.

They can make calls to anywhere in the country to any mobile or fixed line phone at just one rupee a minute. They can even call any Reliance IndiaMobile within the state at just 40 paise a minute.

After the reduction in licence fee and revenue share of long distance segment, the IndiaOne rates will bring down the NLD rates to a level what has already been achieved by the local call segment.