Telcos attempt an even deal; threaten to raise tariffs if call drop fine imposed

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Telcos attempt an even deal; threaten to raise tariffs if call drop fine imposed
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Indian mobile phone operators have warned that if they have to compensate their subscribers for call drops, they would be forced to increase their voice and data tariffs.

Telcos are of the opinion that they are already investing a lot in 3G and 4G services, which is why they will not be able to bear the additional costs without any measures. They are also under pressure of increasing tower-installation costs.

"Any increase in operator costs, of which penalties are a part, puts upward pressure on tariffs," Rajan S Mathews, director general of Cellular Operators Association of India, told ET. COAI represents telecom companies operating on GSM tech such as Airtel, Vodafone and Idea. Companies using CDMA or dual technology, such as Tata and Reliance, are represented by the Association of Unified Service Providers of India (AUSPI).
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TRAI has also got the support of government after it reminded the mobile companies of the impending compensation roll outs of Rs 1 for up to three calls a day. The compensation were expected to begin from January 1st but the mobile companies have said that they would wait for the court’s final decision before that.

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