Mobile tariffs may move south

India’s telecom tariffs, the lowest in the world, can fall further by over 50% to about 40p per minute.

NEW DELHI: India’s telecom tariffs, the lowest in the world, can fall further by over 50% to about 40p per minute.

This is the latest assessment of the Department of Telecom (DoT). According to an internal note of DoT, average mobile tariffs — which are currently at about Re 1 per minute — could drop by over 50% if four new players were to enter the fray, coupled with implementation of new norms such as usage of dual technology, number portability and allocation of spectrum to new players and existing operators who want to spread their networks to a pan-India scale.

DoT views assume significance as some 14 firms, including AT&T, DLF, Swiss-based, ByCell, the Sterlite Group, Ispat and HFCL, have applied for pan-India licences. Besides, DoT can highlight the consumer angle even as it issues LoIs to the applicants in queue, which include Spice Communications, Idea, ByCell, Swan Telecom, Cheetah Corporate Services, Parsvnath Developers.
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