Pay more for phone calls in India now. Here’s why

Govt’s gain is sometimes common man’s loss. The scam tainted 2G spectrum on a fresh bidding having ended at a whopping Rs 1.1 lakh crore gain for the govt may lead to an increase in call rates by Rs 1.3 paise a minute. However, as per news report by The Economic Times, TRAI (Telecom Regulatory Authority of India) chairman Rahul Khullar has claimed that the hike in call rate will be just 6-7 paise a minute as the government didn’t consider the cost of capital deployed by the telcos while making its calculations. Although, the customers might not feel the heat directly as the increase in tariff would be spread over some years.

Khullar's comments come almost two weeks after a bitterly fought auction of 2G and 3G airwaves ended, netting the government a record Rs 1.1 lakh crore. The starting prices for the 2G bands of 800 MHz and 900 MHz set by the government were 17% and 23% higher than what TRAI had recommended.

A brutal fight for the 900 MHz and 800 MHz bands saw their respective bid levels surge 93% and 77% over the base prices, driving up the booty for the Centre.

Khullar told the ET that operators were forced to bid aggressively just to survive and for not releasing adequate spectrum, which along with the paucity of towers was at the heart of the current poor quality of voice and data services.

While the govt has earned a handsome amount, the high costs will crimp investments on rolling out new networks or even upgrading existing networks; and thus, hurting call and data services.

(Image: Reuters)