Analyst firm PricewaterhouseCooper on Tuesday estimated the per minute cost of mobile phone subscribers will increase by 29 to 34 paise as compared to 4.4 paise by the Telecom Regulatory Authority of India (TRAI) in its recommendations on spectrum auctions.
The study conducted by PwC along with the Cellular Operations Association of India (COAI) pointed out that TRAI assumes in its operator estimate that minutes of use (MOU) per subscriber will grow by 83% in the 20 year period while in the last four years MOU per subscriber has declined by 13% per annum.
The study 'Impact of TRAI's spectrum recommendations on consumers' undertakes an independent analysis of TRAI's recommendations released on April 23 focusing on the spectrum pricing proposed, and its potential consumer and industry impact.
Sharing his views on the report Rajan S Mathews, director general, Cellular Operators Association of India said, "The PwC assessment has revealed to us the inconsistencies in the TRAI recommendations. Our greatest concern however is the adverse impact upon the end consumer. This careful examination reveals a clear disconnect with the spirit of the National Telecom policy, 2012 which hopes to leverage telecoms as a tool for greater economic inclusion."