Govt Clarifies Misleading Claims On Mobile Tariff Hike

The Telecom Regulatory Authority of India (TRAI) emphasised that market dynamics determine telecommunications service rates within the framework established by the independent regulator

In response to misleading claims about the recent increase in mobile services tariffs, the government on Friday clarified that the current mobile services market, which includes three private sectors and one public sector player, functions under the principles of demand and supply. 

The Telecom Regulatory Authority of India (TRAI) emphasised that market dynamics determine telecommunications service rates within the framework established by the independent regulator. This framework ensures that pricing is guided by competitive market forces while adhering to regulatory guidelines set forth by TRAI.

“The government does not intervene in the free market decisions as the functionality is under the domain of TRAI and tariffs are under forbearance,” said the TRAI.

According to TRAI, telecom service providers (TSPs) have recently raised the prices of mobile services for the first time in over two years. “In the last two years, some of the TSPs have invested heavily in rolling out the 5G services across the country. This has resulted into a significant increase in median mobile speed to the level of 100 Mbps and jump in India’s international rank from 111, in October 2022, to 15 today,” explained the telecom regulatory body.

The TRAI emphasised the importance of safeguarding subscriber interests while promoting the systematic expansion of the telecommunications sector. This growth includes significant investments in cutting-edge technologies such as 5G, 6G, IoT/M2M for Industry 4.0, among others. TRAI underscored that ensuring the financial sustainability of the sector is crucial to supporting these advancements and meeting the evolving needs of consumers and industries alike.

Over the past decade, the telecommunications sector has faced controversies and a lack of transparency, which has resulted in stagnant growth for mobile services. “During the last 10 years, due to progressive policies of the government, the rates of telecommunication services be it voice or data, have fallen exponentially,” said the regulator.