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Telcos Suggest per GB Price of Rs 35

Highlights
  • Reliance Jio stated the Trai shouldn’t observe price restoration and affordable return strategy
  • Vodafone Idea recommended that ground costs should be arrange at Rs 35 per GB
  • Uniform Floor worth will improve the ARPU

Trai’s session paper ‘Tariff Issue of Telecom Services’ and its ground tariff regime would possibly function monetary assist for the telecom sector because the trade is going through a cash-crunch scenario due to the large AGR dues. Telcos akin to Bharti Airtel, Vodafone Idea and Reliance Jio earlier appealed Trai to arrange a ground tariff. Not solely this, authorities officers reached to Trai and requested them to lock up the method and determine a uniform ground worth which might revive the telecom trade from monetary burden. The views of Bharti Airtel, Vodafone Idea and Reliance Jio nearly stick collectively concerning the ground tariff worth because the telcos have demanded that ground worth should be set at Rs 30, Rs 35 and Rs 20 per GB respectively.

Bharti Airtel and Vodafone Idea Suggest Higher Floor Tariff

Bharti Airtel and Vodafone Idea have requested Trai to arrange ground tariff at Rs 30 and Rs 35 per GB as it is going to revive the telco giants and guarantee their viability out there. However, the numbers recommended by the telcos are extra detailed. Whereas, Reliance Jio recommended that ground worth should be set at Rs 20 per GB, which can maintain the investments within the telecom trade.

Reliance Jio additionally marked that the ground tariffs should not be primarily based on the fee restoration and affordable return strategy, whereas Bharti Airtel and Vodafone Idea strongly helps the strategy. Also, Reliance Jio recommended that cell termination charges should be arrange at Rs 0.06 per minute. Whereas, Bharti Airtel and Vodafone Idea recommended a ground worth for a vast voice name.

Will Floor Price Regulate the Market?

As of the present situation of the telecom trade, telcos have been going through hassle due to AGR dues. All the telcos need to pay a cumulative quantity of Rs 1.47 lakh crore to DoT in direction of AGR dues. Vodafone Idea which is essentially the most troubled telco has to pay a whopping quantity of Rs 53,000 crore out of which the telco large has simply paid Rs 3,500 crore. In such a scenario, a uniform ground worth will assist the telcos to realize their Average income per person (ARPU) and survive the monetary misery. Not solely this, however the ground worth may even profit the telcos to offer higher service to their clients.