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TRAI hints, mobile calling and data rates can be expensive

Saturday - December 14, 2019 11:15 am , Category : BUSINESS
Telecom companies seek 'regulation' from TRAI
Telecom companies seek 'regulation' from TRAI

You may have to spend more rupees on calling and data soon!

DEC 14 (WTN) - Mobile data is currently the cheapest in the world in India, the world's largest democratic country and the second-largest populated country. In the year 2016, the era of free calling and cheap data began in India only after Jio's entry into the telecom sector. Smartphone sales in India also increased rapidly after free calling and data became cheaper and to date crores of people in India have smartphones. At the same time, due to cheap data, Indian people are seen active day and night on social networking sites and messaging apps. At the same time, many important tasks including banking, finance, and billing are done only through mobile these days. 

But changes happen from time to time and due to this change, now the phase of cheap data along with free and cheap calling is going to end. Actually, TRAI (Telecom Regulatory Authority of India) has indicated that the calling and data rates can be expensive. You must have been shocked to read this, but the possible increase in the rate of calling and data is going to be on the demand of the telecom companies only. 

For your information, let us know that the demand for fixing the minimum tariff rate for calling and data has been made by the telecom companies from TRAI, and TRAI can seriously consider this demand of the telecom companies. It is being said that if this happens, it will give a lot of relief to the telecom companies running in losses and in low profits. However, TRAI has always refused to interfere in fixing the minimum tariff limit. 

According to the information received from the media, this change in TRAI's stance has come after Bharti Airtel chief Sunil Mittal met the Telecom Secretary. In his meeting with the Telecom Secretary, Sunil Mittal has demanded a minimum tariff rate for calling and data. In fact, telecom tariffs in India have been under control for the last 16 years and if they have increased so only marginally. While the telecom companies have to pay thousands of crores of rupees to the government, the telecom companies are requesting TRAI to fix the minimum tariff rate for calling and data. 

Prior to Jio's launching in 2016, mobile calling and data in India were expensive. But since Jio entered the market, a historic phase of free calling and cheap data has started. Due to this historic step of Jio, the remaining telecom companies were also forced to offer free calling and cheap data to their consumers. But even after doing a lot, the remaining telecom companies could not give commercial competition to Jio and they had to face losses. 

Now that the telecom companies are incurring losses, all the telecom companies have requested the TRAI to fix the minimum tariff for calling and data charges. However, when TRAI attempted to regulate mobile calling and data charges in 2012, it was fiercely opposed by the telecom companies. At that time the logic of the telecom companies was that TRAI should leave the decision on the telecom companies to set the tariff rates. 

But this change in the attitude of the telecom companies has come after an important decision of the Supreme Court. For your information, let us know that in a decision of October 24, the Supreme Court had justified the government's move to include non-telecom revenue in the calculation of statutory dues of telecom companies. Following this decision of the Supreme Court, the other telecom companies including Vodafone-Idea and Bharti Airtel have to pay about 1.47 lakh crore rupees of the government. 

Telecom companies have now urged TRAI to regulate tariffs and fix minimum tariff rates for calling and data to cover the losses incurred by free calling and cheap data and for paying thousands of crores of rupees of the government. But if TRAI regulates calling and data charges, once again calling and data will become costly in the country and it will be nothing short of a shock for those who spend hours on social networking sites and messaging apps.