TRAI May Set Minimum Tariff For Calls, Data For All Telcos: Will Mobile Tariff Increase Even Further?

TRAI May Set Minimum Tariff For Calls, Data: Will Mobile Tariff Increase Even Further?
TRAI May Set Minimum Tariff For Calls, Data: Will Mobile Tariff Increase Even Further?

As per fresh signals coming, it seems that Telecom Regulatory Authority Of India (TRAI) can set a minimum base tariff for all voice calls and mobile data being accessed by Indians.

Will this lead to a higher mobile tariff for all users? Or the tariff will go down?

TRAI Can Introduce A Minimum Base Rate

While speaking at AVIA India Video 360 event, TRAI Chairman RS Sharma has hinted that they may introduce a base tariff for voice and mobile data, which will be applicable for all telecom users in India.

And the reason behind this decision is that, major telecom operators such as Airtel and Vodafone wants TRAI to intervene, and set a minimum tariff applicable for all users.

RS Sharma said, “It is only recently that the telecom companies have together written to us that regulate us, so it’s for the first time,”

RS Sharma also reminded that in 2012, when TRAI wanted a minimum base tariff, then every telecom operator opposed this. But now, most of the telecom operators want the same.

Recently, Airtel founder Sunil Mittal called for regulating the industry, and asked TRAI to intervene. He said, “It is a rare situation where we have written to the Trai (Telecom Regulatory Authority of India), saying please regulate us, because the industry is killing itself. Tariff needs to go up, industry needs to become viable,”

Can Mobile Tariff Go Up Even Further?

This month, every telecom operator (excluding BSNL), increased their mobile tariff by upto 40% in some cases. It includes Jio, Vodafone-Idea and Airtel.

This hike in mobile tariff came after 3 years: Ever since Jio entered the market in 2016, there has been mayhem in terms of profitability and revenues.

Jio introduced cheap voice and data plans, and the ARPU or Average Revenue Per User which hovered around Rs 250 in 2016, came down to Rs 120-Rs 150 as an average.

Now, telecom operators wants to change this, as everyone is bleeding, and they need more profits.

The tariff hike made by all the major telecom operators clearly showcase this trend.

And now, the the call for mobile tariff regulation and confirmation by TRAI, we can conclude that the tariff can go up even further.

We will keep you updated, as more details come in. 

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