Telecom Tariffs Driven by Market Forces: Ministry of Communications

The Ministry of Communications clarified that the rates of telecommunication services are decided by market forces within the regulatory framework notified by the independent regulator, the Telecom Regulatory Authority of India (TRAI). The Government does not intervene in free market decisions as the functionality is under the domain of TRAI and tariffs are under forbearance.

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Also Read: Government Enforces New Sections of Telecommunications Act 2023

Government Response to Recent Tariff Hikes

The government on Friday clarified this in response to misleading claims regarding the recent mobile services tariff hikes of 11-25 percent by three Indian private operators, Bharti Airtel, Vodafone Idea, and Reliance Jio, which immediately followed the 2024 Spectrum Auction.

Highlighting India’s competitive edge in telecom pricing, the government pointed out that TRAI’s policies have facilitated some of the lowest costs globally for mobile services. Citing data from the International Telecommunication Union (ITU) for 2023, India offers a basic mobile package — including 140 minutes of voice, 70 SMS, and 2GB of data — for an average of USD 1.89 per month.

Comparatively, neighbouring countries such as Pakistan and Nepal provide similar services at USD 1.39 and USD 2.75 respectively, while more developed economies like the USA and UK see significantly higher costs, ranging from USD 12.5 to USD 49 per month.

India’s Competitive Telecom Pricing

“In the case of India, at an average price of USD 1.89 per month, practically unlimited voice and 18GB per month is available to mobile subscribers,” the government statement said.