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New Delhi: Mobile phone charges for Delhi and most other cities in India will be hiked by as much as 30 per cent by the end of this year, in what is being described as the industry's worst nightmare.
The world's biggest subscriber base and high population density in India means the country's mobile subscribers are used to paying exorbitant charges.
The industry has been lobbying for a revision of tariffs since the Mobile Telephone Service License (MTSL) was notified in 1997 and is hoping for some relief on account of the lower cost of core infrastructure and falling revenues.
The Cellular Operators Association of India (COAI), the industry's lobby group, has already submitted its demand to telecom secretary A. S. Sharma, asking for a hike in the fixed line charges and general service charge (GSC) of about Rs 100 a month.
The fixed line charge (FLC) has been over Rs 200 for years now and is over Rs 1000 even in the lowest circle of Delhi and other cities. The FLC is pegged at Rs 50 for a fixed line, which will rise to Rs 100 soon.
On the billing side, there is a Rs 35 monthly charge for each connection and Rs 25 per minute of mobile call made or received.
The BG connection, which is popular in the city, will cost a flat rate of Rs 500 and subsequently Rs 150 per month.
Indian telecom operators claim there are no major changes in network or technology that would justify steep increase in tariff. But the industry is lobbying for a revision of the norms for calculating revenue and revenue sharing with different government agencies.
The centre has accepted the argument of operators that they will have to pay the new revenue when they hike their tariff and the percentage of profit will be much less.
However, the government maintains that before it agrees to any revision in the tariff, it should ensure that the regulator — 0b46394aab