Airtel indicates rise in tariffs if additional spectrum is charged (India)

India’s leading telecom operator Bharti Airtel, has hinted at an increase in the call rates in the event that the government decides to charge the operators for the additional spectrum allocated to them.

According to reports, Sunil Mittal, Chairman, Bharti Airtel, has said that if the government decides in their wisdom that this industry needs to be taxed heavily in the form of high spectrum charges, whether it’s one time or recurring, that has to result in higher tariff regime.

As per sources, the Telecom Regulatory Authority of India (TRAI) has proposed a significant hike in the 2G spectrum price along with a charge for any additional spectrum to be allocated beyond the 6.2 MHz limit. Mittal said that if the government finally decides that they want higher charges both upfront and ongoing, the result of that should be higher tariffs.

He added that India already boasts of having the lowest telecom rates which have been affecting their profit margins, as cost of operations remains high. He said if there is going to be more load, that is going to put pressure on margins, which would mean the industry will have to force their hands to raise the tariffs to get the margins back.