New Delhi, Feb. 1: Mobile-to-mobile local and STD calls will cost more from Sunday midnight.

The mobile operators spoiled the government’s “feel good” party by increasing tariff and fixed-line operators are expected to follow suit during the week.

The rate rise is the result of implementation of the new inter-connect usage charges (IUC) regime. The new rate has been formulated by the Telecom Regulatory Authority of India (Trai) for costs to be shared by two operators whose networks are used by subscribers to make and receive a call.

AirTel and Hutch, the two leading operators, have pushed up charges by up to 50 per cent for long distance calls (See chart).

There is no change in SMS rates, but roaming charges will go up by Re 1 for post-paid users. Pre-paid roaming fees will remain unchanged.

The cellphone operators blamed the increase on discrepancies in the rates offered to them by the major operator, Bharat Sanchar Nigam Limited. They refused to comment on whether they would approach the courts now, but indicated availing of the legal option if they continued to suffer losses.

“We reiterate that BSNL’s charges are at variance with your regulations, orders and clarifications issued from time to time… unless these are implemented equitably across the industry by all the operators, including BSNL/MTNL, our financial and commercial interests would be significantly and adversely affected,” the Cellular Operators’ Association of India (COAI) said in a letter to Trai.

“We have no choice but to pass on the impact to the customers. If the regulator intervenes… then the tariff may come down,” said T.V. Ramachandran, the COAI director-general.

BSNL officials said there was no discrimination on the IUC regime and they are offering the rates fixed by the regulator and abiding by its directives.

“We will take up the issue at the appropriate forum. There has been no violation on our part. The private operators hiked the tariff blaming us, we may have to hike our rates since the IUC affects our service too. But political compulsions are holding us back from increasing rates,” said a senior BSNL official.

Fixed-line operators like Reliance and Tata are also likely to announce an increase in their call rates.

S.C. Khanna, secretary general, Association of Basic Telecom Operators, said: “Our members will hold discussions on Monday and we will announce our rates after that. It is difficult for me to say how much will be the hike for fixed-line operators. But with the IUC regime, the fixed-line operators too have to bear the burden.”

In a letter to Trai, the association has said: “Despite the fact that Trai’s IUC regulation stipulates that IUC charges should be settled on accumulated seconds, BSNL is charging on a call-by-call basis. This is violative of the reciprocal pulse rate basis mandated by Trai.”