Mobile tariffs may rise: TRAI

Just a few days back Times of India reported that the Mobile tariff may fall because of the termination charges of IUC (Interconnection Usage Charges), that one operator pays to another on whose network a call ends.

However according to the latest TOI report the mobile prices might go up because Telecom Regulatory Authority of India is all set to stand by its recommendation of over six-fold jump in 2G prices.

Earlier this year TRAI had decided the budget of Rs 10,972.45 crore for the contract of 6.2 Mhz spectrum on Pan India level instead of Rs 1,658 crore that operators paid in the last round of getting licence in the year 2008.

Department of Telecom (DoT) has asked TRAI to furnish the clarification on the spectrum prices before they head for the National Telecom Policy of year 2011.

In response to DoT, TRAI said, "should the government decide to charge the spectrum beyond the initial spectrum (6.2 MHz) by way of amending the licence conditions, the current price would be what has been estimated by the experts..."

It is also reported that every operator that exceeds the limit of 6.2 Mhz spectrum have to pay Rs. 4,571.85 crore for each additional spectrum that the operator holds. However, the price of the spectrum would vary from circle to circle.

As per the report most of the licence that operators hold for 2G spectrum is yet to be renewed and the renewal cost of these licence will be estimated as per the current prices recommended by TRAI.

So, if the prices go high it would definitely put a financial constraint over the network operators. And when the financial burden would increase on the operators it is bound to pass on to the mobile users.