4G Data Charges Can Increase By 10-Times In India; Soon Pay Upto Rs 3000 For 1GB/Day From Airtel, Jio, Vodafone
Top telephone operators in India – Airtel, Vodafone, and Reliance Jio have put forth their requests to the government and demanded for a huge rise in their tariff rates.
How huge is this demand? If the government approves their demands, our phone bills are set to rise by as much 10 times compared to now.
What will the changes in tariff rates be? What are the companies demanding? Find out all the changes proposed by Airtel, Vodafone, and Reliance Jio right here!
How Will The Tariff Rates Change?
As of now, the telecom industries have been offering us data for incredibly low rates, such as Rs. 3.5 per GB. however, the companies have asked for floor prices for the mobile services, i.e., there will be a fixed minimum rate. This will result in a huge surge in the prices, as much as by 5-10 times as of now.
The companies are at liberty to set their own prices, but have chosen to approach the TRAI because of the huge competition.
Vodafone Idea is asking for the minimum data price to be fixed at Rs. 35 per GB, whereas, Airtel has asked for Rs. 30 per GB and Reliance Jio’s demand is Rs. 20 per GB.
How will this affect us?
Consider this: as of now, you are using the cheapest data plan available, Rs 3.5 per GB, with a price of Rs 599 and a validity of 84 days. It offers 2 GB data per day at 4G speed. If the government approves the demands of the telecom operators, this plan might be priced as high as something between Rs 3,360 to 5,880.
Niti Aayog In Support; CCI Disapproves Changes
Amitabh Kant, Niti Aayog CEO, has supported this proposal, whereas, in the past, Niti Aayog has not supported this demand and had expressed their distress to TRAI setting up the floor prices to bail out the telecom companies.
In a letter to the TRAI, Kant said, “We would like to strongly emphasise that floor prices are the need of the hour to enable continuation of a multiplicity of firms that is critical for healthy competition. Given the heavy debt burden being faced by the sector and the recent fall in prices to unsustainable levels, there is no option available but to set floor prices.”
However, the CCI (The Competition Commission of India) has openly stated that this change will not be supported by them. They believe that laying down such floor prices for mobile services is a regressive step and will not have a positive effect on the market.
In a statement, the CCI said, “No mature jurisdictions have imposed price floors on crucial sectors like telecom. Such retrograde regulatory measures bring inefficiencies in the longer run.”