Congress on Friday slammed the BJP-led central government at the centre after the three private cell phone companies increased the tariff of the mobile phones saying that it has put an additional burden of over Rs 35,000 crore on over 109 crore subscribers.
The party also questioned that how can all private cellphone companies increase their average tariffs by the same range of 15 per cent to 16 per cent, despite the fact that their profitability, investment and CAPEX requirements are completely different and why is the Modi government then turning a blind eye to the same.
Addressing a press conference here at the party headquarters, senior party leader Randeep Singh Surjewala said that effective July 3 this year, the three private cellphone companies — Reliance Jio, Bharti Airtel and Vodafone Idea, have increased their tariffs by an average of 15 per cent.
He highlighted that the three private cellphone companies have a market share of 91.6 per cent, or 109 crore cellphone users out of a total of 119 crore cellphone users as on December 31, 2023.
The total additional yearly payment from the pockets of the common man and woman of India seeking connectivity is Rs 34,824 crore, he said citing the TRAI Report dated April 23, 2024.
Surjewala, who is also the Rajya Sabha MP said that cell phone market in India is an ‘OLIGOPOLY’ – Reliance Jio with over 48 crore cell phone users, Airtel with 39 crore cell phone users, Vodafone Idea with 22.37 crore cell phone users.
“Out of these, Jio and Airtel have a customer base of 87 crore making them a virtual ‘duopoly’.
He highlighted that average revenue per customer per month (ARPU) for cell phone user is Rs 152.55, and effective July 3 2024, which was announced on June 27, 2024); Reliance Jio has increased its Cellphone user’s charges from 12 per cent to 27 per cent (its most popular and affordable plan was increased by 22 per cent i.e. from Rs155 to Rs 189 per month. The average increase is 20 per cent.
He said that in case of Airtel, effective July 3, 2024, it increased its cellphone user’s charges from 11 per cent to 21 per cent. The average increase is 15 per cent, Surjewala said.
He also said that effective July 4, 2024, Vodaphone Idea increased its cellphone user’s charges from 10 per cent to 24 per cent. The average increase is 16 per cent, he said.
Surjewala highlighted that two things stand out – first, the date of announcement of increase of tariffs, appears to be clearly in consultation with each other by the three private cell phone companies and second, the date of effective implementation of increased tariffs is the same.
“The additional per year burden of tariff increase is Rs 34,824 crore for 109 crore cellphone users of these three private cellphone companies,” the Congress leader said.
Sharing the company wise division, he said that average increase of tariff for Reliance Jio is 20 per cent, i.e. Rs. 30.51 (20% of Rs 152.55, which is Average Revenue Per Customer). And for 48 crore Jio customers, it will come to Rs 1,464 crore per month or Rs 17,568 crore annually.
Citing the figures of Airtel, he said, average increase of tariff for Airtel is 15 per cent, i.e. Rs. 22.88 (15 per cent of Rs 152.55, which is Average Revenue Per Customer. For 39 crore Airtel customers, it will come to Rs 892 Cr per month or Rs 10,704 crore annually and average increase of tariff for Vodafone Idea is 16 per cent, i.e. Rs. 24.40 (16 per cent of Rs 152.55, which is Average Revenue Per Customer).
“For 22.37 crore Vodafone Idea customers, it will come to Rs 546 crore per month or Rs 6,552 crore annually, he said, citing the extract of TRAI report.
Firing salvos at the government, Surjewala said, “How can private cellphone companies be permitted to unilaterally increase cellphone tariffs by Rs 34,824 crore annually without any oversight and regulation by the Modi government? Why have the Modi government and TRAI (Telecom Regulatory Authority of India) abdicated their duty and responsibility towards 109 crore cellphone users? Wasn’t the increase in cellphone prices withheld till the conclusion of the Parliament elections as Modi government would have been questioned on the justification for burdening 109 crore cellphone users and fleecing them of an extra Rs 34,824 crore.”
He also asked that did the Modi government or TRAI conduct any study on need of CAPEX or impact on profitability by purchase of spectrum through auction after taking into account the previous set of concessions on AGR payable under Telecom Policy, 1999 or deferring of “Spectrum Auction Installments” by Modi 2.0 on November 20, 2019 or other related factors and how can all private cellphone companies increase their average tariffs by the same range of 15 per cent-16 per cent, despite the fact that their profitability, investment and CAPEX requirements are completely different? Why is the Modi government then turning a blind eye to the same?”
“Isn’t it correct that the Supreme Court of India, in “Delhi Science Forum versus Union of India” clearly stated that “The Central Government and the Telecom Regulatory Authority have not to behave like sleeping trustees, but have to function as active trustees for the public good.”? And has the public trust now been sacrificed by the Modi government?” Surjewala asked.
He also demanded that the Prime Minister must answer to the people of the country inuring the 109 crore affected cellphone users.