Airtel Chairman Fears That Cheap Plans Are Killing The Telecom Industry In India

India is one of the cheapest places on Earth to use mobile data, especially if you compare the cost here with that in the US.

With the Dhan Dhana Dhan offer, Reliance Jio surely gave everyone in the country easier access to the internet, but such a competitive advantage has also cost the company a lot of money. Meanwhile, besides regular data plans, Airtel has long offered Airtel Smartbytes, a service that lets customers buy additional high-speed data on top of the monthly plans. In case users want to check their broadband plans, they can easily make contact with the Airtel Broadband Customer Care center.

And while Airtel and Vodafone are struggling with debts trying to cope with competition, they made the decision to increase tariffs to control the damages while maintaining great offerings and services to meet customers’ expectations. Facing stiff competition in the Indian market, both companies have offered competitive packages to attract more new users while keeping existing ones.

Airtel’s Chairman and Managing Director Sunil Bharti Mittal said during a recent press conference that low prices along with high consumption are killing the telecom industry in India. He particularly said:

According to Mittal, the telecom industry needs a balance, needing TRAI’s intervention to stabilize the chaos.

Mittal’s statements surface shortly after TRAI’s suggestion about creating a base price for data and calls. In addition, TRAI recently extended the charge Airtel and Vodafone users paid to for calls they made to rival networks by a year.

If there are base prices, tariffs will rise even higher, which will be a disappointment to Indian mobile users. But consumers are expected to spend at least Rs 300 a month instead of the current monthly amount of Rs 125.

However, these brands may need a tariff increase like this. Both Vodafone and Bharti Airtel reported losses in the previous quarter, Rs 50,921 crores as opposed to Rs 23,045 crores. In addition, in the first quarter, Airtel reported a net loss of Rs. 2,886.

The Supreme court maintained a demand from the telcos for $13 billion in overdue interest and levies last month, which hit both their shares. Since its entry in the country, Vodafone has had trouble with Indian authorities over regulatory and tax issues.

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