With huge spectrum, yet to be sold in spectrum auction by telecom operators, the mobile tariffs will go up, but not immediately.
The COAI (Cellular Operators Association of India) said there will be increase in the rates for mobile calls and other services in the long term, although it may not have any immediate impact on tariffs.
As per the COAI Director General, Rajan S Mathews tariffs have to be increased as the input cost of operators have been increasing.
“In the longer term, from the industry perspective you can’t see how you continue to increase the input cost and not expect the output cost to increase. This just doesn’t make economic sense,” he said.
The bidding has already crossed Rs 1lakh crore on eight day of the auction for 2G and 3G spectrum.
Bharti Airtel, Vodafone, Idea Cellular and Reliance Communications have embroiled in conflict with Reliance Jio and others to protect their existing spectrum holding in the ongoing auction that is crucial for providing mobile services.
Reliance Jio, Uninor, Tala Teleservice and Aircel are in affray for additional spectrum.
Smrutirekha
