Competition, new tech to keep rates down

Telecom Secretary M. F. Farooqui has pointed out that tariffs may not rise as a result of the recently concluded spectrum auction as operators will be kept in check by increasing competition.

Mr. Farooqui’s comments, however, come less than a few weeks after Vodafone India boss Marten Pieters had said the point had come where the company would have to increase its tariff levels every year depending on cost levels.

“I am not the operator… I’m the regulator. But there are two elements or factors that will help keep themobile tariffs from rising,” Mr. Farooqui said, on the sidelines of the Mobile World Congress trade fair here.

The first, he said, was that increasing competition would help keep tariffs down. “This will make sure that operators will not do anything that will reduce their market share.” The second, he said, was that new types of technology would allow operators to lower costs and also offer a wide range of different services.

source: http://www.thehindu.com / The Hindu / Home> Business / by Anuj Srinivas / Barcelona – February 27th, 2014