Vodafone India Managing Director and CEO Marten Pieters, on Wednesday, said that there was no scope for reducing tariffs.
Addressing reporters at the launch of a mobile money transfer service, he said that the tariff of 60 paise per minute charged by the top three operators was necessary. Although the industry average of 44-45 paise was being charged by the rest, it was they who needed to increase their tariffs.
The industry, he said, was in a financially bad position, with most operators reeling under heavy debts.
“To repair the industry, tariff hardening is needed.. Industry needs to set a tariff level which is sustainable”, he said.
On the auction issue, he said that the whole issue was not so much about licensing as about the high reserve prices.
“With very high raw material prices.. how do you make money?,” he asked.
He said that Vodafone’s 3G services had taken off very well, and data volumes had overtaken that of 2G.