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 Tuesday, May 12, 2009

In India, mobile tariffs in comparison to other countries are lowest and are anticipated to further decline by 20-25% during 2009. The decline in tariffs will triggered by the new entrants and rapid expansion of the existing telecom players. “Whenever new entrants commence operations in the country, there is a high chance of reduction in tariffs as they come in with innovative strategies and prices, including freebies. Apart from tariffs, the price reduction would also be extended to handsets,” European handset major Meridian India CEO Rajiv Khanna, reportedly said. The Telecom Regulatory Authority of India (TRAI) estimates that the country needs around 300,000 towers by 2010 to support the massive 10 million monthly subscriber additions.

In recent, the termination charges have been brought to 20 paise from 30 for domestic calls, which the operators have begun passing on to the subscribers, is also pulling tariffs down. Though, few firms are not in favour of lowering tariffs to be an apt option for competing in the telecom space. “Indian companies are rolling our predatory prices without conducting proper studies, unlike in the U.S. or developed countries. Price reductions coming in from desperate companies are anti-competition and these are not based on economic sense, and in the long run this would be anti-consumer and anti-industry,” said Idea Cellular Managing Director Sanjeev Aga.

Source: Wireless Federation.