Vodafone Concept, Airtel might have to attend longer for Trai lifeline

NEW DELHI: The telecom regulator might take no less than six months to determine on a flooring worth for tariffs because it seeks to reach at a stage that can assist the telephone corporations regain monetary well being however gained’t be thought to be anti-consumer, mentioned individuals with data of the matter.

The divergence in the price knowledge submitted by Reliance Jio Infocomm, Bharti Airtel and Vodafone Concept provides to problems. There’s a distinction of `12 within the costs quoted for one GB of knowledge and a one-minute voice name.

“The ground worth, if in any respect fastened by Trai (Telecom Regulatory Authority of India), is unlikely to kick in earlier than June subsequent yr,” mentioned one of many individuals.

Prodded by the sector and the federal government to give you a flooring worth, Trai just lately floated a session paper searching for the views of stakeholders. It has requested whether or not such a restrict must be fastened and the way by searching for knowledge on prices. The intent is to reach at a quantity that components in a margin over the price that may assist telcos financially.

Trai has additionally requested whether or not there needs to be a corresponding cap on tariffs if it fixes a flooring worth.

With the businesses having elevated fees just lately, they should cross on revised numbers.

“All three telecom corporations… will now be updating (the information) since they just lately raised tariffs and the impression of that rise on total utilization and price of manufacturing one unit of voice and knowledge will likely be shared with Trai,” mentioned one of many individuals. Among the many submissions that of Jio’s is the bottom and Vodafone Concept’s the best.

“Value per unit of knowledge (GB) plus voice (minute) for Jio is about Rs 10, for Airtel is Rs 16 and for Vodafone Concept, it’s the highest at Rs 22,” mentioned one of many individuals.

“The up to date knowledge which will likely be submitted by telecom corporations to the regulator in response to the session paper might be even greater.”

The variance means the regulator might want to determine which worth to make use of as a reference.

“If it’s the bottom price, then it nonetheless doesn’t assist an operator akin to Vodafone Concept,” the individual mentioned. “And, if the best price is fastened as the bottom, then a margin on prime of that might enhance the tariffs very steeply. This is able to in truth give an enormous margin to the participant producing on the lowest price, who can then once more disrupt the market.”

Bharti Airtel chairman Sunil Mittal mentioned just lately that telecom tariffs have to go as much as no less than Rs 300 per individual per 30 days to revive the telecom sector’s viability and that Trai must intervene on this regard.

The individual cited above mentioned the regulator wants a scientific foundation to repair the ground worth and utilizing a Rs 300 invoice as a place to begin gained’t work. “That can not be the start line,” he mentioned.

The three telephone corporations didn’t reply to emails searching for remark.

Stakeholders must submit feedback on the Trai paper by January 17 and counter feedback by January 31.

The session paper comes as the federal government has stepped in to assist revive the indebted telecom sector that faces hefty dues following a Supreme Court docket judgment in October.

It has introduced a two-year moratorium on fee of spectrum dues, is contemplating a lower within the licence charge and is referring the matter of Rs 37,000-crore enter tax credit score mendacity with it to the GST Council.

Value wars for the reason that entry of Jio in September 2016 have left the latter as the one telco making revenue and compelled others to exit or consolidate.