India’s leading GSM mobile service providers – Bharti Airtel, Vodafone, Idea Cellular, Uninor and Videocon who are unhappy with the TRAI’s recommendations on spectrum, warned that high spectrum costs would lead to a 25-30% hike in call rates.
While Government said it is difficult to predict likely changes in call rates of mobile telephones in the wake of cancellation of 122 licenses as per Supreme Court verdict. This is because, as per the current Tariff framework, call rates of mobile services are under forbearance except for National Roaming where ceiling tariff has been specified. Mobile operators have the flexibility to offer different tariffs depending on the market conditions and the other commercial considerations.
In their joint letters to the Telecom Minister, Kapil Sibal, Sanjay Kapoor – Bharti Airtel CEO for India and South Asia, Marten Pieters – Vodafone India MD and CEO, Himanshu Kapania – Managing director Idea Cellular , Sigve Brekke – chief executive Uninor and Arvind Ball- director and CEO Videcon Telecommunications, demanded that all airwaves in the 1800 MHz band be put up for auctions, and the reserve price be slashed by 80% to allow the market to discover the ‘true’ price.
The five mobile service providers also warned that the high cost for spectrum would rob operators of resources required for network rollouts, a move that would push back the industry by several years. They have also asked the minister to do away with Trai’s rollout obligations. Under such inconsistent, regressive and uncertain regulatory environment, it is inconceivable that the telecom industry, which is already in a state of doldrums, will be able to deliver on the Government’s vision of affordable communications, rural penetration and roll-out of data services.
Operators also demanded that Telecom Minister Kapil Sibal should reject all key proposals suggested by the Telecom Regulatory Authority of India (Trai).
DB May 2, 2012 at 6:03 pm
Can TARIFFS not increase ? If you say YES keep in mind following:
1. 3G license costs – Rs 67,000 crore across 3G license holders + 3G flop show
2. Vodafone tax payout – Rs 11,000 crore (for 2008 purchase of Hutch)
3. Airtel purchase of ZAIN South Africa – $10.7 bn
4. 2G Auctions – 2012 (1800 Mhz)
5. Spectrum re-farming – 900 Mhz re-distribution among all operators
Naveen April 29, 2012 at 8:39 pm
Operators again have to bid in auction which will be again a huge amount will be invested.. Really there should be hike in tarrif plans in order to increase in revene and they should get their ROI..but the tarrif plans should be customer centric.. keeping MNP in place..
tiju April 29, 2012 at 4:57 pm
in Pakistan the no.of telecom companies is below 8 and the call charges in india and Pakistan is almost similar
sachin April 29, 2012 at 1:40 pm
bsnl is only for its staff who dont like to work at all ..but want salary on the correct date@Gowrishankar
mane April 29, 2012 at 1:39 pm
Airtel not say but they do it.
Silently hiked pre. Trf in rajasthan to 1.5p/sec with stv 5 for 90 days.
sachin April 29, 2012 at 1:38 pm
bsnl is the worst operator in india@Jai
Jai April 29, 2012 at 12:30 pm
Bsnl is best for call rate and network 2G & 3G.
WiMAX April 29, 2012 at 12:22 pm
I think tata teleservice has enough money to bid the upcoming 2g auction,, for that they r not join this club, and i think TATA and RELIANCE r next who rules indian telecom sector.
sachin April 28, 2012 at 11:06 pm
what foolishnes you are saying?is the current low rate in india prevailing because of bsnl?we are getting such low rates just because of Private operators.just think yaar@Gowrishankar
avisek April 28, 2012 at 10:44 pm
use bsnl.
kp4all April 28, 2012 at 10:28 pm
USE UNINOR SIM LESS CALL RATES… GOOD OFFERS LEAVING IN UNINOR
sandeep April 28, 2012 at 8:38 pm
@karthik
dude get a lif.Bsnl would increase prices once evry operator increases the tariffs.If u remember bsnl never introduced 1p/s till they lost subscribers and made substantial loss.Te=hen by the time they started 1p/s plan other operators had started to increase tariffs to 1.2p/s.After about 1 month again bsnl increased off-net call prices to 1.2p/s.Every operator..be it bsnl or private does want to rob customers and make profit.But MTNL has good plans in mumbai and delhi..That i can agree,but bsnl…cm on!!!!
Rohan Singh April 28, 2012 at 8:30 pm
Our Gov consist of educated fools. All indian slang=only 1% can describe our gov.
Amit April 28, 2012 at 5:37 pm
When it comes to looting & cheating the Indian public, those thugs get in unison very comfortably burying all their differences. First they screwed the Indian law by bribing the officials/ministers to get the spectrum at throw away prices and now that Hon’ble SC has tightened the screw, these thugs have started to threaten on the pretext of higher call charges. Wah
PD April 28, 2012 at 4:54 pm
In fact no on has increased the call rates as of now.For the present, Prab Da has increased the service tax, so the talk times against the vouchers/top ups have been reduced substantially. Interesting the players make hue and cry but did accept the increase recommended by TRAI in PROCESSING FEE with folded hands ! Reason – It augments their revenues in the similar lines of Prab Da’s exchequer ! All in all the subscribers already received two blows – increase in service tax and increase in processing fee ! Now wait for the next !
Gowrishankar April 28, 2012 at 4:05 pm
BSNL is always best..Only telcom player work for people..
Gowrishankar April 28, 2012 at 4:05 pm
BSNL is always best..One telcom player work for people..
Sudhakar April 28, 2012 at 3:36 pm
I think it is time to throw all our SIM cards to the GARBAGE BIN and start using landlines. Use mobiles only to listen songs and for content sharing. Thats all.
zeeshan April 28, 2012 at 3:24 pm
@Esmail
I think 900 Mhz will used for both 2G and 3G for providing voice and data services in rural areas and 1800 Mhz and 2100 will be used for proving voice and data services in urban areas. BSNL will surely hold minimum 5 Mhz of 900 Band in each circle as 5 Mhz is minimum requirement for provinding UMTS services. 2G and 3G coverage of BSNL will be superior.
Kavi April 28, 2012 at 3:11 pm
Actually Telecom services to be stopped forever in india.
Kapil Sibbal Ready to make life of indians Hell
He is teaching lesson to facebook abusers who abused him up via cheap 2G packs
Good Going bharat
Go Kapil Go
Finally people can get rid from harmful waves of towers
The sprit of Ushafone is calling
Many operators are ready to be buried forever
karthik April 28, 2012 at 3:05 pm
BSNL not increase call cost tariff.Dear indians use only BSNoL private operators suck the
Roy April 28, 2012 at 2:26 pm
What a wuss!1
Esmail April 28, 2012 at 2:19 pm
If the reserve price of spectrum in 1800 MHz band is actually slashed by 80% of which chances are pretty slim, it would give a huge boost to the telecom industry, 1800 MHz would be preferred for 2G voice rollout and 900 MHz band which is more valuable would be refarmed for 3G data services since most Quad band 3G handsets available in the market are fully capable of functioning on 3G in 900 MHz frequency band.