All the things Airtel Chairman Sunil Mittal said on Monday, force us to go on a time travel when the data tariffs are really high and hard to afford by everyone. Bharti Airtel Chairman Sunil Mittal called this current data tariffs a “tragedy” and also added that these rates are unsustainable. He clearly Suggested that in Rs. 160 we should get 1.6GB instead of 16GB. To make this industry sustainable data tariff should be ₹100 per GB says Airtel Chairman Sunil Mittal.
## Government gave less importance to this Industry?
On Monday at the launch of a book ‘Some Sizes Fit All’, written by Bharti Enterprises Vice-Chairman Akhil Gupta, Sunil Mittal said about the Supreme Court order on the AGR ( Adjusted Gross Revenue ) issue. This issue made a serious concern. As per the National Telecom Policy in 1994, under which licenses were given in accordance with the Indian Telegraph Act, 1885, under this law the Telecom Companies are required to pay a fixed fee to maintain their license.
So AGR seems to be a concern which is under our law, then why this causes a serious problem to the Telecom Companies?
The DoT ( Department of Telecommunications ) claimed all the revenues from all earning which is under the AGR. Now, The Telecom companies objected against this AGR ( hidden definition ) and filled a case in 2003. Hidden Definition includes Value-added services, interest income, dividend profit, etc. In 2015 Telecom Regulatory Authority of India excluded some of the non-telecom revenues from AGR, but DoT was against TRAI’s suggestion.
How Much to pay?
In total 1.47 Lakh crore adding all AGR dues by all companies. The license fee is near about Rs 92,600 crore and Spectrum usage Charges about Rs 55,100 crore.
What Sunil Mittal said in that event on Monday?
” Government should be less litigious with industry. My own stand is that once they lose a particular case at a particular level, they should not be necessarily forced to or compelled to take it…to the last point. Then it keeps on being into litigation forever, “ also added
“I mean there is a large amount which has been sucked out of our industry which I would rather have gone into building 4G networks in rural and bringing out 5G. This is the set up of our country. We will have to bow in front of the order of the highest court of the land, the Supreme Court,”
” To my mind, the government needs to be a little bit more courageous in dealing with some of these litigation. If you look at… ‘Vivad se Vishwas’, it is a fantastic step in that direction. A similar situation has to be in roads, telecom, electricity. We have many, many issues. Telecom is one area where companies are more like law firms with antennas, “
## “the sustainability of investments in this sector by that company is going to be in difficulty.”:
Bharti Airtel and Reliance JIO are the two market players which were survived till now after tackling all the issues. We can see that how JIO had made the internet use affordable by lowering the costs. But now things are not in favour of these companies so he said
“You either consume 1.6GB of capacity per month either at this price point or you may prepare to pay a lot more,” Mittal at an event, according to PTI. “We don’t want $50-60 (roughly Rs. 3,700 – Rs. 4,400) like the US or Europe but certainly $2 (roughly Rs. 160) for 16GB a month is not sustainable.”
## Average Revenue Per User ( ARPU ): behind ₹100 per GB says Airtel Chairman Sunil Mittal:
Now one report of Economic Times the ARPU of Airtel is Rs. 157 which was Rs. 129 a year ago. Sunil Mittal said,
“We need a ₹300 ARPU in which you will still have lower end at ₹100 a month with decent amount of data. But if your consumption is largely around watching TV, movies, entertainment and depriving other vital special services networks, then you need to pay for that,” ( ₹100 per GB says Airtel Chairman Sunil Mittal )
I am an Airtel user from 2017 and what I remember I used to recharge with Talktime vouchers by scratching cards but after JIO things are changed and plans are more affordable. I don’t know what will happen but yes surely he had said this ( ₹100 per GB says Airtel Chairman Sunil Mittal ). If this will true then surely other operators too also increase because otherwise, everyone will leave Airtel right? An average internet user I think now in India consumes a minimum of 750 MB of data which sums up to ( 750 * 30 ~ 22 GB, 22 * 100 = 2,200/- ) 2,200 Rs, which is really hard for me and so many other users to pay. We can’t blame all time the company for every issue we faced but yes we are consumers so let’s see what happens in the coming days. Check out other sections of this blog. Thanks for reading.