Days of low mobile tariffs might be over as mobile operators are contemplating hike in prices. After Bharti Airtel, Vodafone India has said tariffs would go up every year in view of growing input costs.
“Prices will go up every year. Last year, tariffs were marginally increased by 6.2 per cent, but they are still below inflation. Input costs are consistently going up…We can’t deal with it forever. For last 17 years we have seen low prices…Prices need to go up now,” Vodafone India Managing Director and CEO Marten Pieters told journalists here on Tuesday.
Noting that telecom companies needed to be profitable to sustain and grow, Mr. Pieters said cutting on discounts and freebies was also one option to cut on costs and increase revenues. Recently, Bharti Airtel had announced cuts on its freebies and discounted tariffs plans to improve profitability.
Asked about telecom sector’s expectations from the new government, Mr. Pieters said availability of spectrum was the biggest challenge which should be addressed on priority basis. “The government must make available spectrum for the industry at reasonable prices. We (industry) are spectrum starved,” he said, and noted that the 3G spectrum available today covers only half of the country.
The Vodafone India head also hoped that the new government would not challenge the TDSAT verdict allowing intra-circle 3G roaming as it benefited consumers, companies as well as the government as more usage means more revenue for the exchequer.
