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Reliance Jio, Bharti Airtel, and Vodafone Idea lost many subscribers in August due to a big price increase in July, as reported by TRAI. Following the Jio Tariff Hike, the company reported a loss of 4.01 million users, according to TRAI. Airtel lost 2.4 million, and Vodafone Idea lost 1.8 million. Meanwhile, BSNL gained 2.5 million new users. However, there’s now hope on the horizon as private telecom companies push for government reforms to ease their financial burden. If successful, these reforms could lead to more affordable recharge plans, potentially reversing the recent price increases.
The Cellular Operators Association of India (COAI), representing companies like Jio, Airtel, and Vi, has formally requested the government to lower the license fee. Currently, telecom operators pay 8% of their total revenue as a license fee, which includes a 5% network obligation charge. The COAI proposes reducing this fee to between 0.5% and 1%, arguing that lower fees would allow companies to invest more in network upgrades and technological expansion. Many consumers reacted to the Jio Tariff Hike by switching to other providers like BSNL, which gained new users. However, with reforms, users will benefit as they don’t have to change their provider.
A reduced license fee could also benefit consumers by making recharge plans more affordable. With lower operating costs, telecom companies may be able to reverse recent tariff hikes, leading to cheaper recharge options for customers.
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SOURCE : CASHIFY.IN
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