The three major telecom companies increasing mobile tariffs has taken a political turn. After strong criticism from the main opposition party, Congress, the government has officially clarified this issue. The government says that it does not interfere in determining mobile tariff rates. The government has also clarified that mobile services in India are still cheaper than those in the world’s major countries.
No Government Interference, Rates Are Decided According To The Market
The Department of Telecommunications of the Ministry of Communications stated this on Friday. In the statement, the Department of Telecommunications said that 1 government company and 3 private companies currently work in the domestic market. The market for mobile services now works according to demand and supply. Mobile companies fix rates under the framework set by the regulatory TRAI. The government does not interfere in the decisions of the free market.
TRAI Monitors Changes In Tariffs
According to the statement, TRAI monitors telecom companies’ rate increases and ensures these changes remain within the prescribed limits. The Department of Telecommunications also added that mobile tariffs in the country have remained unchanged for the last two years while telecom service providers invested heavily in starting 5G services. As a result, today, the average mobile speed in the country has increased to 100 Mbps, and the country’s international ranking in mobile speed has jumped from 111 in October 2022 to 15.
Telecom Companies Made Plans So Expensive
All three major telecom companies, Reliance Jio, Bharti Airtel, and Vodafone Idea, have made their plans expensive from this month. Telecom companies have increased mobile tariffs by 11 to 25 percent. Reliance Jio was the first to announce a tariff hike. After that, Bharti Airtel and Vodafone Idea also announced tariff hikes. Due to the increase in tariffs, the burden of thousands of crores of rupees on mobile consumers is expected to increase. Opposition parties are making this an issue.
At the same time, the government has reiterated in its latest statement that the rates of mobile services in India are still lower than those in the world’s major countries. The Department of Telecommunications has based its point on the data released by the International Telecom Union. The ITU data gives the rates of the minimum mobile, voice, and data basket (140 minutes, 70 SMS, and 2 GB data) as of last year, 2023.
Rates Of Mobile Services In Major Countries
According to the data, consumers in China are spending $8.84 for minimum services. Similarly, $4.77 is being spent in Afghanistan, $4.62 in Bhutan, $3.24 in Bangladesh, $2.75 in Nepal and $1.39 in Pakistan. If we look at the rates in major economies, they are $49 in the US, $ 20.1 in Australia, $15.8 in South Africa, $12.5 in the UK, $6.55 in Russia, $6.06 in Brazil, $3.29 in Indonesia and $ 2.55 in Egypt. In the case of India, the rate is $1.89, and consumers benefit from 18 GB of data and unlimited voice calls.
