Telecom tariffs may rise by 90 paise in metros: StudyMay 22nd, 2012 - 6:33 pm ICT by IANS
New Delhi, May 22 (IANS) Telecom tariffs will rise by 90 paise a minute in metros and 20-34 paise on an average across the country if the sector regulator’s recommendations on spectrum pricing are accepted, suggests a study.
The Telecom Commission is to consider the controversial proposals of the Telecom Regulatory Authority of India (TRAI) at its meeting Thursday.
Ahead of it, the Cellular Operators Association of India (COAI), the GSM industry lobby, Tuesday unveiled consultancy PricewaterhouseCoopers (PwC) India’s assessment of the proposed spectrum pricing and its potential impact on consumers and the industry.
“Our study reveals that the impact on consumers could be very considerable and also that the industry is not ready to take any further deterioration of its financial performance,” Mohammad Chowdhury, leader telecom, PwC India, told reporters.
The TRAI has said the increase would be only of over four paise per minute. Currently, the operators on an average are offering call tariffs of around 75 paise per minute.
Earlier this month, COAI warned the government that if the TRAI’s recommendations were accepted, the tariffs would go up 100 percent, hitting customers hard.
“TRAI’s calculations are fundamentally flawed. This would affect the people at the bottom of the pyramid significantly,” said Rajat Mukherjee, chief corporate officer, Idea Cellular.
“On the other hand if the operators don’t increase tariffs, they go out of business. The impact will be on competition — if the competition decreases, the tariffs rises,” he added.
The PwC report slammed the TRAI’s assessment that the share of non-voice services would grow to 50 percent of the revenue of a firm by 2020.
In 2011-12, the non-voice revenue was 14 percent of the total revenue. Of the 14 percent, message-based services contribute about 9 percent and pure data services contribute nearly 5 percent.
According to the report, the financial performance of the operators will be impacted significantly by the recommendations due to the proposed heavy spectrum costs.
The TRAI has recommended, among other proposals, a reserve price of Rs.3,622 crore for 1 MHz pan-India spectrum, which is around 10 times higher than the price at which 2G licences were allocated in 2008 under former Telecom Minister A. Raja.
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- Reserve price of spectrum major concern: COAI - Jun 30, 2012
- Telecom Commission to meet Thursday on TRAI recommendations - May 23, 2012
- EGoM to decide on spectrum pricing Thursday - Jun 20, 2012
- 2G spectrum base price decision deferred till Friday (Lead) - Jul 18, 2012
- EGoM to take final call on pricing and refarming of spectrum - May 26, 2012
- Telecom Commission to meet again Saturday on spectrum pricing - May 24, 2012
- EGoM on telecom approves spectrum mortgaging (Lead) - Jul 12, 2012
- No decision on 2G pricing, EGoM favours refarming spectrum - Jun 05, 2012
- TRAI sticks to high reserve price for spectrum auction - May 14, 2012
- EGoM to recommend spectrum price, but cabinet to take call - Jul 20, 2012
- Telecom EGoM to recommend lower reserve price to cabinet for approval (Lead) - Jul 20, 2012
- DoT to meet operators on spectrum reserve price - Jul 13, 2012
- GSM players to contest TRAI theory of minor tariff hike - May 07, 2012
- Call rates can rise 100 percent, warn telecom operators - May 03, 2012
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