pc: news24online
Major private telecom operators like Reliance Jio, Bharti Airtel and Vodafone Idea have recently introduced new prepaid and postpaid plans effective from July 2024. Telecom operators are pushing for tariff increases to support the expansion of services and investment in 5G technology. The recent tariff increase has led to an increase in the number of customers switching to government-owned telecom provider BSNL.
According to media reports, the private telecom industry may reconsider the recent price hike, subject to the government's upcoming decisions on the sector. Cellular Operators Association of India (COAI), a trade association representing telecom operators, has urged the government to reduce the license fee imposed on telecom operators. The government currently levies license fee at 8% of the adjusted gross revenue (AGR) generated by telecom operators. COAI is pushing for a revised license fee structure that will reduce the rate from 0.5% to 1% of total revenue. According to COAI, the lower license fee will accelerate digital inclusion, especially in remote areas, and make life easier for the common man. The industry body's suggestion comes soon after the Supreme Court's decision to dismiss the review petition filed by telecom operators regarding reforms in AGR calculations.
According to COAI Director General SP Kochhar, imposing a higher license fee is unfair, especially when the original spectrum-related rationale has been eliminated. They suggest that the government adjust the fee to a level that reflects actual administrative costs rather than the current exorbitant rate. Additionally, telecom operators believe that if the government and telecom regulators accept this demand, it could bring significant benefits to the industry.
In July, BSNL saw a significant increase in customer acquisition, with the addition of approximately 30 lakh new customers. However, Reliance Jio, Airtel and Vodafone Idea saw a decline in their user base. Telecom Regulatory Authority of India (TRAI) data showed that the subscriber base of Vodafone Idea, Airtel and Jio declined by 14 lakh, 17 lakh and 8 lakh users respectively.
According to reports, BSNL added 25 lakh new users to its customer base in August, while Jio, Airtel and Vodafone Idea lost 40 lakh, 24 lakh and 19 lakh customers respectively.
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