Will Telcos pass on tariff cuts to Consumers?
Making communications and data usage cheaper in India will definitely boost m-commerce and Modi's Digital India plans - as long as telcos pass on government tariff cuts to consumers.
Times of India reports that in a move that could lower consumer tariffs for calls and broadband while also freeing up cash for debt-laden mobile service operators, the government has cut spectrum usage charges (SUC) from 5 per cent of adjusted gross revenues (AGR) to 3%. The move is expected to be a confidence booster ahead of mega auctions, slated for July, which will see the government sell over 2,000 MHz of spectrum across seven frequencies, including the lucrative but highly-expensive 700 MHz band that will go on sale for the first time. The decision could free up as much as Rs 3,200 crore for mobile companies. Top sources within the government said the decision to reduce SUC was approved by the inter-ministerial telecom commission that met in late March.