Government Clarifies Airtel, Jio, Vodafone Tariff Hikes

The government has rebutted claims suggesting it permitted Reliance Jio, Airtel, and Vodafone Idea to independently announce tariff hikes without oversight. Recently, all three telecom companies raised the prices of their prepaid and postpaid plans effective from July 3, 2024.

According to an official press release, the regulatory body clarified that the current mobile services market, comprising three private sector players and one public sector player, operates under market dynamics of supply and demand. The rates for telecommunications services, it stated, are determined by market forces within the framework established by the independent regulator, TRAI (Telecom Regulatory Authority of India).

“The Government refrains from intervening in free market decisions, as this falls within the purview of TRAI, and tariffs are subject to forbearance,” the release affirmed. “Telecom Service Providers (TSPs) notify TRAI of any changes in mobile service tariffs, which TRAI monitors to ensure compliance with regulatory guidelines.”

Highlighting recent developments, the government emphasized that TSPs had increased mobile service prices after a span of over two years. It also noted substantial investments by some TSPs in rolling out 5G services nationwide, resulting in a significant rise in median mobile speeds to approximately 100 Mbps and an improvement in India’s international ranking from 111 in October 2022 to 15 presently.

“In safeguarding subscriber interests and fostering the systematic growth of the telecom sector, including investments in advanced technologies such as 5G, 6G, IoT/M2M for Industry 4.0, maintaining the financial viability of the sector is crucial,” TRAI asserted.