We have seen telcos fight it out through price cuts, but this time around the price cuts aren’t an effect of the price war, but an effect of a review that is on its way. The plan, which has been put forth by DoT, asks for a review of the termination charge that is levied upon operators. In simple terms, when an Airtel user calls up a Vodafone users, this charge has to be paid by Airtel to Vodafone.
This also justifies the attractive rates operators offer for calls made on the same network. The current charge stands at 30paise per minute and hasn’t has stayed unchanged since five years. With the scenario changing, and India adding millions of users to the revolution, there is a need to review the charges.
We Say: While we have always seen things from the users perspective, this time around too, we believe this move would bring down rates. And with new entrants waiting for their turn to unleash their services, the review would further widen the scope of a price war. However, we expect the process to take some time to be implemented.