Indian government in favor of data tariff reduction

By November 29th, 2014 AT 1:23 PM

AK Bhargava, Advisor (Technology), Department of Telecommunications (DoT) said that government of India is in favor of reducing data tariff, as the country is getting ready for 3G and 4G spectrum auctions. The announcement comes while the Department of Telecommunications is preparing to roll out spectrum auctions, which is expected to intensify the competition between service providers, and may push up spectrum prices.

“With the increase in the availability of spectrum, data service will explode as fiber to site is being laid simultaneously. This will result in more public-private projects which will meet the needs of all sections of the society,” said Shyam P Mardikar, Chief-Strategy, Architecture & Engineering, Bharti Airtel.

“Due to the emergence of wireless mobility as the single largest factor in the Indian telecom industry, we will witness a growth of 35 to 45 percent in voice and data traffic,” said Rajan Mathews, Director-General, Cellular Operators Association of India (COAI).


He further said that the companies had to reorient services in terms of mobility so to expand at a greater pace. According to him, the high government charges act as a constraint in the growth of mobile service.

“As a balancing act, the USO Fund contribution should be reduced to one per cent of revenues instead of the current five per cent,” he added.

While defining digital empowerment,Vinit Goenka, National Co-Convener, IT Cell, Bhartiya Janta Party (BJP) said that his party is aiming at creating digital literacy countrywide so that there could be a direct communication between the government and citizens at all levels.

Also Read: Airtel brings back tariff wars, prices 4G lower than 3G plans

“The digital revolution would be realized when the ‘last villager buys his grocery online,” he added.

With imports of digital equipment set to grow to US$100 million by 2017, C-DoT, the research organization of the DoT is making significant contributions to “Make in India” campaign said Vipin Tyagi, Executive Director, Centre for Development of Telematics (C-DOT).

“New government has shown promise but there is further scope for facilitating policy environment for enhancing broadband penetration to cover 30% of our population by 2016 to optimally leverage technology and achieve throughputs at lower costs”, said Sameer Rawal, Director- Strategy & Marketing, Huawei India.

He further added that all stakeholders (Government, Policy makers, Regulators, Service Providers and Equipment manufacturers) need work together and collaborate to make it a cherishable success.

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KmlAbrarSuKaAdiSudharsanJagannath Recent comment authors
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Two key issues that are relevant are… a. Cost of spectruspectrum , but also government to ensure adequate spectrum for good quality of service. b. Cost for laying fiber is going up. Permission are very hard to geget. Each body has its own rules / philosophy. Results in huge delays. c. Global interconnect is in the hands of two three player and RIO charges are one of the highest in the world. This is alsalsoto stop global companies to come in India. Court case pending for a few years now and just getting postponed.. Is ministry really serious… Time to… Read more »


I’ll read the article as “govt in favour of data reduction “. Skip the tariff and get ready for another round of tariff hike. No policies are in sync!

Soon data tariff will increase before spectrum auction n one more after auction. Next year tariff will slightly reduced. And that’s what the govt is talking about.

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