DoT may ask Trai to probe tariff hikes
The department of telecom (DoT) is set to ask sector regulator Trai to look into collusion between GSM operators - the government is of the view that the recent increase in both voice tariffs and SMS rates hikes by all operators over the last 15 d...
By Joji Thomas Philip, TNN |
NEW DELHI: The department of telecom (DoT) is set to ask sector regulator Trai to look into collusion between GSM operators — the government is of the view that the recent increase in both voice tariffs and SMS rates hikes by all operators over the last 15 days is more than just a ‘coincidence’. This comes even as telecom minister A Raja is exploring the possibility of further reduction in tariffs. The minister is also slated to meet Trai chairman Nripendra Misra to discuss if further tariff cuts can be enforced.
Against this backdrop, the government is concerned that the telecom tariffs are currently heading north. For instance, all GSM operators on Monday hiked local SMS charges by a flat 20% to Rs 1.20 per message. This comes just days after Bharti Airtel and Vodafone Essar quietly increased local call charges within their networks by 20% to Rs 1.20 per minute for prepaid customers from Re 1 per minute. Just prior to that, most private GSM players also hiked STD tariffs by over 10% for prepaid users — Bharti, Idea and Hutch increased their STD tariffs to Rs 2.65 per minute as against Rs 2.40 per minute earlier.
According to sources, what has irked the government is that STD tariffs had been increased despite the reduction of access deficit levy recently. They also add that private GSM players had failed to reduce roaming rates recently even as BSNL, MTNL and CDMA players Tata Teleservices and Reliance Communications did so.
Against this backdrop, the government is concerned that the telecom tariffs are currently heading north. For instance, all GSM operators on Monday hiked local SMS charges by a flat 20% to Rs 1.20 per message. This comes just days after Bharti Airtel and Vodafone Essar quietly increased local call charges within their networks by 20% to Rs 1.20 per minute for prepaid customers from Re 1 per minute. Just prior to that, most private GSM players also hiked STD tariffs by over 10% for prepaid users — Bharti, Idea and Hutch increased their STD tariffs to Rs 2.65 per minute as against Rs 2.40 per minute earlier.
According to sources, what has irked the government is that STD tariffs had been increased despite the reduction of access deficit levy recently. They also add that private GSM players had failed to reduce roaming rates recently even as BSNL, MTNL and CDMA players Tata Teleservices and Reliance Communications did so.
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