In the recent move by cell operators, the rates have been increased by as much as 50 % and this additional burden on consumers even when he faces clogged networks and call drops will be a disincentive to go cellular !
While the cell companies are only interested in raising the rates and thereby pocketing super profits, this will hugely impact the average consumer and shatter the MYTH that cellular rates are dropping !
Had the cellular networks been significantly upgraded to bring relief to consumers and improve QOS (Quality of Service) in the areas of network availability, customer service, etc and then the hike might have been justified and that too partially !
It is to be noted that cellular subscriber (GSM Subscriber) base has been increasing by 100% every year and this surely doubles the operators revenues but this benefit is not passed on to the consumers ! The cellular operators now enjoy economies of scale in their operations and this brings down their costs.....It is further forecasted by experts that the subscriber base is further set to increase many folds and will bring in additional revenue to the operators.
Besides the cell operators have many other non-voice revenue sources from which they earn hefty. SMS for example does not cost anything to the operators, which means to send SMS, the operator incurs zero cost and yet they charge upto Rs1.50 per message.
Moreover, they have generated additional revenues by charging customers for ringtone downloads which can cost a disgusting Rs. 7
While some may consider all this a justifiable means to generate revenues, what is especially disturbing that inspite of all these revenues available they have resorted to a cell rate hike !
Even the TRAI ( Telecom Regulatory Authority of India ) which used to regulate cell tariffs has raised objections to such move by cell operators and says that such hike, according to their calculations is unjustified !!
TRAI had allowed cell operators to decide their own tarrifs when it assumed that there is enough competition now (especially competition from Reliance ) that the cell operators will not increase it indiscriminately to the disadvantage of subscribers.
However, the cellular operators took advantage of this freedom and went ahead to stun the consumers and TRAI alike !
This is the link available where TRAI expresses its displeasure and you can see it yourself :- (just copy paste the like below on the address bar and hit enter)
https://economictimes.indiatimes.com/articleshow/470000.cms
Reliance will be introducing prepaid connections soon, the only hope would be that if it offers compelling rates that might force the GSM operators to roll back the rates, at least partially !