Tuesday, January 15, 2013

Trai says current tariffs are fine


In a breather to the telecom firms reeling under huge losses, the Telecom Regulatory Authority of India (Trai) on Monday said that the prevailing call tariffs were not “objectionably” high and good for competitive environment, adding it will continue with the existing tariff regime for the time being which allows operators to decide on the charges to be levied on consumers for mobile services.

Emphasising upon the another important issue — deactivation of inactive mobile connections — it said that the recommendations for the same should be finalised by March.

“The mobile tariffs are competitive. We could not find that tariffs have been in any objectionable territory,” Rajeev Agarwal, secretary, the Trai said.

“In normal course, it (the recommendations) should take one-and-a-half-month more from now,” he added talking about the issue of operators arbitrarily disconnecting mobile phone connections on the ground of non usage of numbers.

After years of severe competition, which had lead to dirt-cheap tariffs being offered, Bharti Airtel had announced a 20-25% hike last year which was followed by all the leading players.

Recently again many firms have hiked data tariffs by 25-30% to improve margins.

In this context, Trai sought views of stakeholders on the need to review the existing regime of tariff forbearance. Views were also sought on a suitable tariff framework for data services. 

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