Mobile Call Rates Will Be Up By 30Paisa/ Minute

No good news for the mobile user of India. People who love to talk for hours on their Mobile-Phone now have to think twice before engaging on their phone for long time. Because Mobile Call Rates are jumping to 30paisa per minute. Hike in tariff is about to happen because Indian Cabinet has keep the base price of the spectrum at Rs 14000 Crore. As per Telecom industry this decision will definitely affects Telecom sector growth and force operator to hike tariff on their regular services.

As per further reports quoted the Cellular Operators Association of India (COAI), "It will continue to have an impact on the tariffs to the extent of about 30 paisa per minute. The effect on finances is that an amount of Rs 3,20,000 crore of additional debt that will have to be laid on the industry".Elaborating on the background of the issue, the report adds that the Cabinet, with Prime Minister Manmohan Singh at the helm took the decision to fix the reserve price at Rs 14,000 crore for 5 MHz of airwaves. TRAI had recommended around Rs 18,000 crore for the spectrum auction.Association of Unified Telecom Service Providers of India (AUSPI), the body of CDMA operators was quoted as saying, "It (reserve price) is still very high. It will definitely affect the tariffs."

Another mention in the PwC report was quite alarming. It stated that the industry is under a lot of debt and the recommended price will make it difficult to obtain a bank loan. "Assuming the spectrum acquisitions as set out by TRAI in its recommendation are debt funded, we estimate that the industry will need to further increase its current debt burden of Rs 185,720 crore by approximately Rs 272,000 crore over next five years," the Executive Director of PwC India, Mohammad Chowdhury was quoted in one of our previous reports.

Early this year, the Supreme Court had revoked 122 telecom licenses. The decision plunged the mobile network market of Asia's third-largest economy into uncertainty. The ruling was a setback for Manmohan Singh's government, which oversaw the sale of the licenses at below-market prices, costing the exchequer up to $36 billion in lost revenues. The licenses affected included all of those held by Unitech Wireless, the Indian joint venture of Norway's Telenor and Unitech.

High Call Rates, Call Rates, 30 Paisa per minute, TRAI, Telecom

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