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This is an archive article published on April 27, 2003

‘With competition, tariffs have fallen’

TRAI has increased bureaucracy not cut it down?Not true. The fruits of liberalisation is visible in this sector. Starting from cellphones wi...

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TRAI has increased bureaucracy not cut it down?
Not true. The fruits of liberalisation is visible in this sector. Starting from cellphones with a tariff of Rs 16.80 per minute for calls we are down today to Rs 1.50 per minute average rates. The consumer has greatly benefited. While competition and availability has increased, tariffs have fallen.

Why has the TRAI not brought about transparency in the telecom sector?
True, we may not have been able to convey the logic behind our decisions. That can only happen if we are more transparent and follow more detailed consultation process. Clearly, I will not act as a tribunal where you cannot question our decisions or how we have arrived at them.As an authority it is TRAI’s mandate to be transparent and logical.

TRAI must set free and fair tariffs without politics. Yet TRAI has offered forbearance to most operators…
If all these tariffs are forbearance, then the TRAI may also be in forbearance or is redundant. I do not agree that just stating ceiling rates is enough for services. We also may have to sometimes set some floor rates in order to prevent companies from predatory pricing which in the short run may help consumers but in the long run will wipe out competition.

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