The Centre has responded to allegations from the opposition regarding recent tariff hikes by major telecom operators in India. According to the Ministry of Communications, the Indian telecom market operates under demand and supply dynamics, offering some of the world’s lowest tariffs despite recent revisions by Jio, Airtel, and Vodafone Idea.
The Ministry dismissed claims by the Congress party, asserting that Telecom Regulatory Authority of India (TRAI) has maintained a policy of forbearance over mobile service rates for the past two decades. They emphasized that Indian subscribers benefit from competitive pricing, with unlimited voice calls and 18 GB data averaging $1.89 per month, which is lower than comparable services in countries like the US, UK, Russia, and Australia.
Highlighting the role of market competition, the Ministry stated that the current market structure with three private sector players and one public sector player allows for optimal pricing under regulatory oversight. They noted that the government does not intervene in pricing decisions, which are guided by market dynamics and regulatory frameworks set by TRAI.
The Ministry also highlighted recent investments by telecom companies in 5G infrastructure, leading to significant improvements in mobile internet speeds and India’s global ranking. They underscored the importance of financial viability for ongoing technological advancements, indirectly referencing past challenges in the sector such as the 2G spectrum scam from a decade ago.
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