'Per-second tariff' is a must or bust?

Just how feasible is making the 'Per-second tariff' mandatory for all telecom services?

Ever since the new rule was announced, Telecom stocks have tumbled and Trai chairman J S Sarma is now examining the matter. "We will issue a consultation paper on the matter in a month," he said in a hurriedly convened press conference. Soon all other telecom operators including Airtel, Vodafone, Aircel and Idea will be forced to follow the 'per second tariff' rule according to sector regulator TRAI's new rules.

However, according to Sarma, it will be mandatory for telecom operators to offer 'at least one such plan'; consumers would be free to choose the tariff scheme of their choice. Also, operators will be given the power to choose the rate they charge per second. "Customer satisfaction is paramount and there is sufficient work to be done in this regard," Sarma noted.

While Tata's Docomo has become a rage, especially ith collegiates, some consumers are bound to stick with the pulse rate tariff plan from various telecom providers. There is no doubt that consumers will benefit from the per-second plan, but the margins for telecom providers will be under threat. Bharat Sanchar Nigam Ltd (BSNL) has already kick started the one paise per second pulse (for local calls) and two paise per second pulse (for STD) in the states of Karnataka, Andhra Pradesh and Orissa. Newbie Aircel also extended its pay-per second calling plan from Kolkata and Orissa to Uttar Pradesh.