The telecom regulator has sent letters to all the companies which have recently hiked tariffs seeking justifications for the reasons as to why they have hiked the tariffs and the reasons for the same. However, telcos cited inflationary pressure in the country as being responsible for the tariff hike
New Delhi: The Telecom Regulatory Authority of India (TRAI) has asked leading telecom service providers, including Bharti Airtel, Vodafone and Idea, to justify their decision to hike mobile tariffs by up to 20%, reports PTI.
"We have sent letters to all the companies which have recently hiked tariffs seeking justifications for the reasons as to why they have hiked the tariffs and the reasons for the same. The last one (letter) gone to Reliance Communications," TRAI chairman JS Sarma said on the sidelines of an event.
Recently, companies like Bharti Airtel, Idea Cellular, Vodafone and Reliance Communications raised tariffs for their services by about 20% in most operating circles.
Most of the companies cited inflationary pressure in the country as being responsible for the tariff hike.
Airtel had raised the tariffs for its 'Advantage' and 'Freedom' pre-paid tariff packages, which are based on per minute billing, to 60 paise per minute for local and STD mobile-to-mobile calls. Earlier, it was 50 paise per minute in this category.
"Telecom is probably the only industry where, despite increasing inflation, tariffs have been falling unabated.
Continuously declining margins, high third generation (3G) and broadband and wireless access (BWA) auction prices, constrained spectrum and rural roll-out aspirations leave us with little choice but to make some price corrections," Bharti Airtel had said in a statement.
RS Reddy has 34 years of experience as a banker in multifarious assignments
India Factoring & Finance Solutions Pvt Ltd, a joint venture of the state-owned Punjab National Bank (PNB) along with Malta based FIM Bank Group, Italy based Banca IFIS and Blend Financial Services Ltd, Mumbai, has appointed RS Reddy as independent director on the board of the company. Prior to this appointment Mr Reddy was a chairman and managing director at Andhra Bank.
Mr Reddy took charge as CMD of Andhra Bank in August 2008. He has 34 years of experience as a banker in multifarious assignments. He was also the chief executive of Bank of India's American Operations in New York for three and half years.
Sudeb Sarbadhikary, CEO and MD of India Factoring said, "We are delighted to welcome RS Reddy on the Board of India Factoring. I am confident that his vast experience, knowledge and unique insights into the lending to small and medium enterprise and cross border trade products in india and overseas would be an invaluable asset to India Factoring. We would be looking forward to his guidance to enable us to build a consistent, sustainable and growing long term business."
Mr Reddy said "India Factoring has a vision to provide financial services to the SME sector which despite being a significant contributor to the Indian economy suffers from lack of support from the financial institutions. I am delighted to be a part of the team wherein I can fruitfully use my knowledge of SME financing to assist in the development of a platform to support them by way of factoring & trade finance products."
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