Critics Slam Modi Government For Mobile Tariff Hikes Impacting Consumers

In a recent development, the Narendra Modi-led government has come under fire from the Opposition for permitting three major private mobile operators to increase tariffs without regulatory oversight. This move has sparked concerns about its impact on consumers, resulting in an estimated additional expenditure of Rs 34,824 crore annually.

Criticism from Congress and CITU

Congress General Secretary Randeep Surjewala raised objections, highlighting that Reliance Jio, Airtel, and Vodafone Idea collectively raised tariffs by an average of 15 percent. This hike affects a substantial 109 crore subscribers, translating into significant financial implications for consumers.

The CPI(M)-backed CITU echoed these concerns, emphasizing that such tariff hikes are unjustified and will disproportionately burden the common people. General Secretary Tapan Sen criticized the government for allegedly favoring private operators over BSNL by not facilitating its transition to 4G and 5G services.

Financial Impact on Consumers

According to Surjewala, as per a TRAI report from April, the average revenue per customer per month stands at Rs 152.55. He pointed out that Reliance Jio's tariff increase averages 20 percent, equating to an additional Rs 30.51 per customer monthly, thereby generating an extra Rs 1,464 crore per month or Rs 17,568 crore annually from its 48 crore subscribers.

Airtel, with 39 crore subscribers, will see a 15 percent hike, resulting in an additional Rs 892 crore per month or Rs 10,704 crore annually. Similarly, Vodafone Idea's 16 percent increase will generate an extra Rs 546 crore monthly or Rs 6,552 crore annually from its 22.37 crore users.

Government and Regulatory Oversight

Surjewala criticized both the government and TRAI for what he perceives as negligence in their regulatory duties. He raised questions about the timing of the tariff hike, suggesting it might have been strategically delayed to avoid scrutiny during parliamentary elections.

He referred to a Supreme Court directive urging the government and TRAI to act as active trustees for public good rather than passive entities. This directive, he argued, raises questions about whether public trust was compromised in allowing these tariff increases.

Tapan Sen's correspondence with Telecom Minister Jyotiraditya Scindia highlighted the substantial profits reported by Reliance Jio and Airtel, questioning the necessity of increasing Average Revenue Per User (ARPU) and advocating for a rollback of the tariff hikes.

Via