Lok Sabha Question No. 584 (UNSTARRED), answered on 2022-07-20
Subject: Telecom Services Rates
Ministry: COMMUNICATIONS
Asked by: Ravneet Singh

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA UNSTARRED QUESTION NO. 584 TO BE ANSWERED ON 20 TH  JULY, 2022

## TELECOM SERVICES RATES

## 584. SHRI RAVNEET SINGH BITTU:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether the mobile phone and telecom services rates are expected to rise due to raising of tariff by the various telecom companies and if so, the details thereof;
- (b) whether the total  subscriber  base  of  the  major  telecom  companies  in  the  country  have come down in the last few months and if so, the details thereof along with the reasons therefor;
- (c) whether the Government is taking any steps to help stabilize the telecom services rates and also improve the subscriber base of the various telecom companies in the country;
- (d) if so, the details thereof; and
- (e) if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE FOR COMMUNICATIONS (SHRI DEVUSINH CHAUHAN)

- (a) As per the existing tariff framework, tariff for telecommunication access services is under forbearance except for services such as National Roaming and Rural Fixed Line Services, mobile number  portability  charges  and  leased  circuits.  Subject  to  compliance  to  extant  regulatory provisions, service providers are free to design and offer tariffs based on their understanding of the market situation and in their best commercial interest. Service providers have the flexibility to decide various tariff components including recharge value for different services areas of their operation. Tariffs are offered by service providers taking in to account several factors including input costs, level of competition and other commercial considerations.

- (b) The service provider wise total telephone subscribers (Wireless+Wireline) from January22 to April 22 are as under:
- (c) to (e) To address the issue of financial stress in the telecom sector, the Government has taken the following steps in September 2021:
- i. Rationalization of Definition of Adjusted Gross Revenue.
- ii. Moratorium/Deferment of up to four years in annual payments of dues arising out of the AGR judgment and spectrum purchased in past auctions.
- iii.  Option  to  the  TSPs  to  pay  the  interest  amount  arising  due  to  the  said  deferment  of payment by way of equity.
- iv.  Rationalization  of  Interest  rates  and  removal  of  Penalties  for  delayed  payments  of License Fee (LF)/Spectrum Usage Charge (SUC).
- v.  Reduction in BG requirements to 20% of the stipulated amount against License Fee (LF) and other similar Levies.
- vi. Removal of levy of Spectrum Usage Charges (SUC) on the spectrum to be acquired in future auctions.
- vii. For spectrum auctions held henceforth, Telecom Service Providers (TSPs) will not be required  to  submit  Bank  Guarantees  (BGs)  to  securitize  spectrum  auction  installment payments
- viii.  To  encourage investment, 100% Foreign Direct Investment (FDI) under automatic route permitted in Telecom Sector.

|       | Total Subscriber (Wireline + Wireless)   | Total Subscriber (Wireline + Wireless)   | Total Subscriber (Wireline + Wireless)   | Total Subscriber (Wireline + Wireless)   | Total Subscriber (Wireline + Wireless)   | Total Subscriber (Wireline + Wireless)   |
|-------|------------------------------------------|------------------------------------------|------------------------------------------|------------------------------------------|------------------------------------------|------------------------------------------|
| S.No. | Service Providers                        | As on 31st Jan-22                        | As on 28th Feb-22                        | As on 31st Mar-22                        | As on Apr-22                             | 30th                                     |
| 1     | Bharti                                   | 362,159,171                              | 363,842,235                              | 366,181,564                              | 367,068,877                              |                                          |
| 2     | BSNL                                     | 121,606,573                              | 121,445,838                              | 121,250,990                              | 120,819,216                              |                                          |
| 3     | Quadrant                                 | 228,494                                  | 247,116                                  | 266,799                                  | 271,426                                  |                                          |
| 4     | Vodafone Idea                            | 265,658,704                              | 264,151,463                              | 261,347,210                              | 259,799,359                              |                                          |
| 5     | MTNL                                     | 5,987,963                                | 5,960,966                                | 5,942,289                                | 5,910,181                                |                                          |
| 6     | Reliance Com                             | 183,529                                  | 179,343                                  | 177,468                                  | 174,921                                  |                                          |
| 7     | Tata                                     | 1,595,993                                | 1,599,765                                | 1,600,819                                | 1,592,706                                |                                          |
| 8     | Reliance Jio                             | 412,034,669                              | 408,618,791                              | 410,166,502                              | 412,180,471                              |                                          |
|       | TOTAL                                    | 1169455096                               | 1166045517                               | 1166933641                               | 1167817157                               |                                          |

These reforms are expected to promote healthy competition, protect interests of consumers, infuse liquidity, encourage investment and reduce regulatory burden on Telecom Service Providers (TSPs).

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