The Telecom Regulatory Authority of India has asked cellular operators to hold the reduced tariffs for national and international long-distance calls announced last week.

It has directed them to justify the costs leading to the lower tariffs. The Trai order can force operators to roll back their tariff plans.

"You are advised not to implement the tariffs till the issue is clarified," Trai said in its order. The regulator has also called the operators for a discussion before clearing their tariffs.

Cellular brands, including Hutch, Airtel and Idea, had reduced airtime for national long-distance calls by around 80 per cent to 50 paise a minute. They had also waived the airtime for international calls.

Cellular operators do not need permission from Trai on tariffs. However, Trai has the right to demand explanation in cases where there are elements of predatory pricing or anti-competitive practices.

Bharti Televentures executives said the company would soon respond to Trai. They said the tariffs announced for Airtel were within the parameters announced by the telecom regulator, and there was no cause for concern.

Industry sources pointed out that if cell firms were violating norms, then so were other companies like Bharat Sanchar Nigam Ltd, which was not charging airtime for national long-distance calls. They said the waiver of airtime for international calls was being recovered by cell firms through rentals.

Hutchison executives said the Trai order would be followed. "We are prepared to fall in line with Trai's guidelines. If it wants us to roll back the tariffs, we will do so," said a company executive.

Trai had earlier barred BSNL from lowering its tariffs, terming it discriminatory. The regulator had also indicated that the 40 paise tariff for national long-distance calls offered by Reliance Infocomm would be looked into.

Price check

• Trai asks cell firms to justify the costing leading to lower tariffs.
• Cell firms claim tariffs are cost-based, confident of convincing Trai.
• This would be the first instance of a tariff rollback if Trai is not convinced.
• Cell firms say norms should be applicable to all.