Indian government in favor of data tariff reduction

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.

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“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.