New Delhi: There is good news for cellphone users. Mobile tariffs are set to tumble as a result of new players' entry in this space. Mobile tariffs in India are already among the lowest in the world.
They are likely to fall by as much as 50 per cent when new players start operations after getting spectrum, PTI quoted Telecom Department sources as saying on Wednesday.
Reports say an internal note prepared by DoT has indicated over 50 per cent fall in mobile tariffs to about 40 paise per minute assuming four new players enter the fray after the allocation of new spectrum.
The implementation of new norms such as usage of dual technology, number portability and allocation of spectrum to new players are going to bring in a tough competition among the telecom operators leading to further benefits to customers.
At present, there are only three pan-India operators — Bharti Airtel, Reliance Communication and Bharat Sanchar Nigam Ltd, while Vodafone-Essar and Idea cellular are waiting for additional spectrum to start services in some of the circles.
At least 13 companies — including AT&T, HFCL, Bycell, Parsavnath Developers, DLF and Shyam Telecom — have applied for pan-India licences. On the issue of spectrum availability to accommodate new players, a DoT official told PTI that "there was enough scope for allotment of spectrum to a few new operators even after meeting the requirements of existing operators and licensees."
The government is processing the 575 applications and may issue Letters of Intent soon. With the increase in competition, tariffs are bound to fall in all segments of services, be it local calls, roaming, national long distance or one-India call, DoT officials said.
Asked by when LoIs would be issued to new applicants, officials said, "The process is on... each applicant has submitted voluminous documents... A final decision will be taken soon."
(With PTI inputs)
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