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This is an archive article published on January 9, 2016

Telecom firms support differential pricing

The two said telcos are already offering differential tariffs for various voice and SMS components and such differential tariffs for voice have only enhanced the affordability of telecom services.

Telecom industry bodies COAI and Auspi have in response to telecom regulator Trai’s consultation on differential pricing for data services stated that the government must allow it, as it is crucial to data growth.

In a joint response to Telecom Regulatory Authority of India’s consultation on differential pricing for data services, COAI and Auspi said India is a market where 80 per cent of the population still does not enjoy mobile data services and so a flexible and progressive data tariff policy will lead to high mobile data services usage, which would translate into greater adoption of mobile internet and broadband services.

The COAI and Auspi said the roll-out of broadband services is at the inflexion of growth and therefore any tariff offering or pricing structure that boosts the internet ecosystem needs to be seriously considered and not prejudged and forbidden through a blanket ruling on grounds of inapplicable apprehensions of discrimination.

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“Trai may examine a particular data plan of the operator and determine whether the tariff plan conforms to the above highlighted principles,” the industry bodies have said.

The two said telcos are already offering differential tariffs for various voice and SMS components and such differential tariffs for voice have only enhanced the affordability of telecom services.

On the contrary, a uniform tariff for all types of calls would have increased the call rates in India.

The two also suggested that of Rs 5 lakh crore required to fund roll-out of broadband and internet services over the next 3-5 years for the government’s Digital India Programme, 93 per cent of the investment is expected to come from the private sector (largely from telecom companies).

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“Telcos should be allowed to offer differential tariff for specific content/website, provided it is non-discriminatory.,” said COAI and Auspi.

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