Mobile Tariffs will go up but not Immediately: COAI

Posted By: Gizbot Bureau

    Huge outgo in spectrum auction by telecom operators will increase rates for mobile calls and other services in the long term, although it may not have any immediate impact on tariffs, industry body COAI said today.

    "Not immediate, its going to take about nine months to a year before you begin to start seeing the impact in terms of the implementation, roll out, investment in new equipment, all of these things have to happen," COAI Director General Rajan S Mathews told PTI when asked about the impact of spectrum auction on tariffs.

    Mobile Tariffs will go up but not Immediately: COAI

    Recommended: Top 10 Best Smartphones with 2GB RAM to Buy under Rs 15,000

    He, however, added in the longer term, tariffs have to increase as the input cost of operators have been rising. "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 don't make economic sense," he said.

    The proceeds from the spectrum auction has already crossed Rs 1 lakh crore mark as aggressive bidding took place across all bands on the eighth day of the biggest sale of 2G and 3G airwaves. The amount is expected to rise further as there is spectrum which is yet to be sold. Incumbents Bharti Airtel, Vodafone, Idea Cellular and Reliance Communications are locked in horns with Reliance Jio and others to protect their existing spectrum holding in the ongoing auction that is crucial for providing mobile services.

    Recommended: Top 20 Most Awaited Android 5.0 Lollipop Smartphones to Launch in India Soon

    While incumbents have participated in auction to defend their existing spectrum, RJio, Telewings (Uninor), Tata Teleservices and Aircel are in fray for additional spectrum. According to a research report by Barclays, the spectrum payments by telecom operators will have a limited impact on their balance sheets in near term as the payments are on a deferred basis.

    Source: PTI

    Read More About: mobile phones tariff coai news

    Stay updated with latest technology news & gadget reviews - Gizbot

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Gizbot sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Gizbot website. However, you can change your cookie settings at any time. Learn more