Bharti Airtel’s CEO Manoj Kohli has sought intervention from Telecom Regulatory Authority of India (TRAI) in tariffs as the companies are offering very low tariff schemes that are not sustainable in the long run.
“TRAI should look at predatory pricing,” said Kohli. “Tariffs have to be sustainable in the long-run. Current tariff is lower than the cost structure of operators.”
India is one of the most competitive markets in the world. The government allowed seven new companies to offer GSM based mobile services in last one year. Therefore, the total number of operators in a region would go up to 12 in most of the places.
On further scope of tariff cuts, Kohli said, “the next level of tariff cuts would come from the reduction in high taxes and levis which are burdening the telecom users. There are 30-31 per cent tax which the users have to bear right now.”