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Should customers brace up for tariff hike?
TT Correspondent |  |  09 Nov 2012

As the date for spectrum auction draws nearer, the telecom operators’ voice for tariff hike is getting shriller. And if the demand for hike continues to be raised at the same pitch, consumer should be bracing up for paying more for their mobile bills.

In the sequel to the demands for higher tariff in the wake of steep hike in the spectrum price, Bharti Airtel on Thursday reiterated that there is need for the tariff hike to cover the marginal costs and maintain profitability.

Speaking on the sidelines of the World Economic Forum, Bharti Airtel CEO (India and South Asia) Sanjay Kapoor said that though the entire industry is reeling under the competitive pressure, Airtel may not be the first to do that. He said that it is this pressure that is preventing operators from hiking tariff.

He said that Airtel has always been prudent while taking decision like tariff hike and may not be the first to take the step. “Machoism doesn't help every time “, he said.

He said that ultimately this will lead to consolidation as it is a slow burn with every day some operator closing down some circles

On being asked if the tariff hike is imminent, he said that at this stage, no timeline could be given. “But there is a need for price hike”, he said

Industry lobby COAI has already made a strong case for tariff hike  as a result of a decision by the Cabinet to keep the base price of the spectrum fixed at Rs.14,000 crore. The decision, says the telecom industry, will prove to be "regressive" for the sector's growth and that it would force operators to hike tariffs.

    
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09 Nov 2012(IST)  
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