GSM Operators Hike Voice Tariff; DoT May Ask TRAI To Investigate

While the associations representing GSM and CDMA mobile operators have been trading charges over the past few weeks, all GSM operators increased local call and SMS charges for prepaid customers report the Hindu and ET. Earlier this month, GSM operators had hiked STD rates as well. Prepaid accounts for around 80 percent of the subscriber base for both companies, so a change in rates by around 20 percent is likely to have a major impact on revenues. I just checked with the Airtel call center, and they’ve increased charges for two plans – 1150 and Freedom 150.

This comes as quite a surprise since the government representatives has spoken frequently of declining call rates over the past year. The change in rates has been put down to rising cost of maintaining networks, though it could also be attributed to decreasing ARPUs (Average Revenue Per User). As oer ET, the Department of Telecom (DoT) may ask the Telecom Regulatory Authority of India (TRAI) to look into the matter, and is considering enforcing tariff cuts. No one is using the C word yet, though. Time for number portability, eh?

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