Call drop penalty: operators threaten tariff hike

Indian telecom operators today upped the ante in their battle with the government over dropped mobile calls, warning that if they have to compensate 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 cost without taking any counter-measures. They are also under pressure to install more towers.

 "Any increase in operator costs, of which penalties are a part, puts upward pressure on tariffs," Rajan S Mathews, director general of the Cellular Operators Association of India, told The Economic Times. 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), which is also battling against the call drop fine which officially came into effect from 1 January, but which the operators have not implemented so far while the issue is in court.

The Telecom Regulatory Authority of India has got the support of the government after it reminded the mobile companies of the impending compensation rollout of Rs1 each for up to three call drops a day.