The Telecom Regulatory Authority of India (TRAI) has published its analysis regarding the effects of the controversial reserve prices for spectrum on tariffs and cellcos’ profits. The analysis sought to propose the level of tariff increase required to neutralise the increase in cost of spectrum, based on current growth rates of traffic and subscribers. The report claimed that a tariff increase of INR0.05 (USD0.0009) per minute would allow operators to be profitable within two years, whilst an INR0.10 hike in tariffs would reduce the loss-making period to a single year
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OVETEL TRAI analysis expects INR0.05 tariff hike; report flawed and non-transparent, says COAI
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