Tariff cuts nothing to do with new entrants, MP writes to PM

Trai data show that mobile tariffs came down from 80 paise per minute to 60 paise in 2009 even before spectrum could be allocated

PTI | November 15, 2011



Questioning the argument that 2G spectrum allocation in 2008 at 2001 prices has led to tariff cuts, MP Rajeev Chandrashekhar in a letter to Prime Minister Manmohan Singh said call rates had dropped nearly 25 per cent even before allotment of radio wavies to new entrants.

"One of the main justifications used by the government for giving away precious 2G spectrum at 2001 prices without going through the process of open, transparent auction -- thereby perpetrating the 2G scam in 2008 -- was a reduction mobile tariffs (affordability)," Chandrashekar wrote to PM as Member of Parliamentary Standing Committee on IT.

Trai data show that mobile tariffs came down from 80 paise per minute to 60 paise in 2009 even before spectrum could be allocated or services launched by new entrants, he said.

"The mobile tariff reduction had nothing to do with new entrants' tariff plans. Later, in 2010 when new entrants became operational, mobile tariffs reduced by 10 paise per minute," Chandrashekhar said.

Since new operators did not have good market share or network rollout, the dominant telecom operators were able to increase reverse mobile tariffs, he said.

"They announced a 20 per cent hike across several packages this year not just for 3G but even for 2G voice. In fact mobile operators threatened further hike in mobile tariffs for the first time in India' 16-year telecom industry," Chandrashekhar said.

Blaming the government's policy and "delay" in decision making for the telecom sector's "dismal performance," Chandrashekhar said timely implementation of Trai's recommendation on spectrum pricing could make the government collect additional income of Rs 10,000 crore for 2011-12.

He added that inability of DoT to cancel 85 telecom licenses mentioned by CAG has lead to hoarding of spectrum.

Chandrashekhar, in his letter, said that finalisation of National Telecom Policy 2011 could be delayed by nearly a year which will hamper many decision related to telecom industry.

The MP said that government has not taken action against DoT officials found guilty by One-Man Committee.

"Merely handing the report over to CBI is a gross abdication of duty on the part of the Hon'ble MoCIT since regardless of whether or not the CBI can frame such officers based on its FIR or the orders of the Supreme Court dated 16th December 2010," Chandrashekhar said.

Comments

 

Other News

Who checks the books?

I read about the news about the Coimbatore library over coffee this morning. On the face of it, the headline was about a political ‘war’ between the DMK and TVK. But what stayed with me was something much more important than the blame game behind what had transpired. A writer walking through

Development paradox: Falling poverty miracle and an inequality problem

India’s reduction in poverty over the past decade is a development achievement of considerable significance. The World Bank’s April 2026 ‘India Development Update’ estimates that the share of Indians living below the international extreme-poverty line of $3.00 per person per day i

In Arunachal, a river we call mother

In Arunachal Pradesh, the Siang is not just a river. For many of us, especially the Adi people, it is part of our family. Our grandparents fished in it. Children learned to swim in it. Our farms drink from it. When someone says a huge dam will be built on it, we do not hear the word "project".

A new retelling of the Mahabharata delves into key moments

In a time when every decision carries consequences and questions of ambition, power, loyalty, identity and moral choice continue to shape our lives, Dr. Arun Krishnan’s new book, ‘Mahakshana’ (Penguin India) offers a strikingly relevant retelling of the Mahabharata.  

Cabinet approves viability gap funding to develop grid-scale energy storage systems

The Union Cabinet, chaired by PM Narendra Modi, has approved the Viability Gap Funding (VGF) Scheme for Development of Grid-Scale Energy Storage Systems, with a total financial support of Rs.14,500 crore for the period FY 2026-27 to FY 2030-31. The scheme aims to support the development o

Cabinet creates a pathway to absorb Agniveers in Defence Forces

An objective assessment in terms of organisational requirements and operational efficiency has brought out the outstanding performance of Agniveers in terms of skills, motivation levels, physical fitness and technological prowess. As envisaged earlier, based on merit, 25% of Agniveers will be offered reg

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter