Can a floor price for mobile tariffs save beleaguered telecom players?
On Tuesday, the Telecom Regulatory Authority of India commenced a consultation process to inquire if there is any regulatory intervention required for fixing tariffs and the floor price of mobile services. Well, if you are wondering what changes after the introduction of fixed floor price, let me tell you, if that happens, free calls on mobile services may become a thing of the past, as it leads to effectively ending free mobile/phone call and data regime. Telecom industry body COAI sees it as a relief for the debt-ridden sector and asserts that continuing with six paise mobile call termination charge will not have any impact on consumers as operators have already absorbed these charges in their recently increased mobile call and data rates. Undoubtedly, the outcome is likely to lead to further hike in mobile call and data cost as industry wants average revenue per user to reach Rs 300 per month from about Rs 125 at present over a period of two years - better revenue realisation per user will offer a much needed breather to stressed telecom industry where debt levels have soared to Rs 7.8 lakh crore.
Trai to review telcos' freedom to fix mobile rates if current tariffs are hiked
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