New Delhi, slamming the government over three private companies raising tariffs on mobile services, Congress on Friday accused it of "wasting" 109 million mobile phone users and asked how companies can be allowed to unilaterally increase tariffs without any supervision or regulation.
Congress general secretary Randeep Surjewala said it may be Modi 3.0, but the flourishing of "crony capitalism" continues.
The Narendra Modi government is fleecing 109 million mobile phone users by sanctioning profiteering by private mobile phone companies, he said at a press conference at the AICC headquarters here.
"As of July 3, the three private mobile companies i.e. Reliance Jio, Bharti Airtel and Vodafone Idea have increased their tariffs by an average of 15 per cent. The three private mobile companies have a quota market share of 91.6 per cent, or 109 million mobile phone users out of a total of 119 million mobile phone users as of December 31, 2023," Surjewala said.
The total additional annual outlay out of the pockets of the common Indian man and woman seeking connectivity is Rs 34,824 crore, he said, quoting TRAI.
The mobile phone market in India is an 'oligopoly': Reliance Jio (48 million cell phone users), Airtel (39 million cell phone users), Vodafone Idea (22.37 million cell phone users), Surjewala said.
Of them, Jio and Airtel have a customer base of 87 crore, making them a virtual duopoly, he said.
Effective July 3, 2024, Reliance Jio has increased charges on mobile phone users from 12 per cent to 27 per cent and the average increase is 20 per cent, Surjewala said.
Effective July 3, 2024, Airtel has increased charges on mobile phone users from 11 per cent to 21 per cent, with an average increase of 15 per cent, he said.
Effective July 4, 2024, Vodafone Idea increased charges on mobile phone users from 10 percent to 24 percent, with an average increase of 16 percent, Surjewala said.
"Two things stand out: First, the date of the rate increase announcement appears to be clearly a consultation between the three private cell phone companies. Second, the effective implementation date of the rate increase is the same." he said.
Surjewala claimed that the annual additional burden of tariff increase is Rs. 34,824 crore for 109 million mobile phone users from these three private mobile phone companies.
How can private mobile phone companies be allowed to unilaterally increase mobile phone tariffs by Rs 34,824 crore annually without any supervision or regulation by the Modi government, he asked.
Surjewala also asked why the Modi government and the Telecom Regulatory Authority of India (TRAI) have abdicated their duty and responsibility towards 109 mobile phone users.
"Wasn't the rise in cell phone prices held back till the conclusion of the Parliament elections as the Modi government would have been questioned on the justification for overcharging 109 crore cell phone users and fleecing them with 34,824 crore additional rupees?" Surjewala said.
Did the Modi government or TRAI carry out any study on the need for CAPEX or the impact on profitability of purchasing spectrum through auction after taking into account the above set of concessions on AGR payable under the Telecom Policy 1999? or the postponement of “Spectrum Auction Dues” by Modi? 2.0 on November 20, 2019 or other related factors, he asked.
"How can all private mobile companies increase their average rates in the same range of 15% to 16%, even though their profitability, investment and CAPEX requirements are completely different? Why does the government of "Modi turns a blind eye to the same?" Surjewala said.
"Is it not correct that the Supreme Court of India, in "Delhi Science Forum v. Union of India", clearly stated that 'the central government and the Telecom Regulatory Authority do not have to behave like sleeping trustees, but must function as active trustees? for the public good?" he said.
Surjewala asserted that the prime minister must answer to the people of India, including the 109 crore affected mobile phone users.
Bharti Airtel last month announced a 10-21 per cent hike in prepaid and postpaid mobile tariffs from July 3, a day after its larger rival Reliance Jio announced a hike in tariffs.
Later in the day, loss-making telecom operator Vodafone Idea (Vi) also announced its plan to increase mobile tariffs by 11 to 24 percent from July 4.
Congress general secretary Randeep Surjewala said it may be Modi 3.0, but the flourishing of "crony capitalism" continues.
The Narendra Modi government is fleecing 109 million mobile phone users by sanctioning profiteering by private mobile phone companies, he said at a press conference at the AICC headquarters here.
"As of July 3, the three private mobile companies i.e. Reliance Jio, Bharti Airtel and Vodafone Idea have increased their tariffs by an average of 15 per cent. The three private mobile companies have a quota market share of 91.6 per cent, or 109 million mobile phone users out of a total of 119 million mobile phone users as of December 31, 2023," Surjewala said.
The total additional annual outlay out of the pockets of the common Indian man and woman seeking connectivity is Rs 34,824 crore, he said, quoting TRAI.
The mobile phone market in India is an 'oligopoly': Reliance Jio (48 million cell phone users), Airtel (39 million cell phone users), Vodafone Idea (22.37 million cell phone users), Surjewala said.
Of them, Jio and Airtel have a customer base of 87 crore, making them a virtual duopoly, he said.
Effective July 3, 2024, Reliance Jio has increased charges on mobile phone users from 12 per cent to 27 per cent and the average increase is 20 per cent, Surjewala said.
Effective July 3, 2024, Airtel has increased charges on mobile phone users from 11 per cent to 21 per cent, with an average increase of 15 per cent, he said.
Effective July 4, 2024, Vodafone Idea increased charges on mobile phone users from 10 percent to 24 percent, with an average increase of 16 percent, Surjewala said.
"Two things stand out: First, the date of the rate increase announcement appears to be clearly a consultation between the three private cell phone companies. Second, the effective implementation date of the rate increase is the same." he said.
Surjewala claimed that the annual additional burden of tariff increase is Rs. 34,824 crore for 109 million mobile phone users from these three private mobile phone companies.
How can private mobile phone companies be allowed to unilaterally increase mobile phone tariffs by Rs 34,824 crore annually without any supervision or regulation by the Modi government, he asked.
Surjewala also asked why the Modi government and the Telecom Regulatory Authority of India (TRAI) have abdicated their duty and responsibility towards 109 mobile phone users.
"Wasn't the rise in cell phone prices held back till the conclusion of the Parliament elections as the Modi government would have been questioned on the justification for overcharging 109 crore cell phone users and fleecing them with 34,824 crore additional rupees?" Surjewala said.
Did the Modi government or TRAI carry out any study on the need for CAPEX or the impact on profitability of purchasing spectrum through auction after taking into account the above set of concessions on AGR payable under the Telecom Policy 1999? or the postponement of “Spectrum Auction Dues” by Modi? 2.0 on November 20, 2019 or other related factors, he asked.
"How can all private mobile companies increase their average rates in the same range of 15% to 16%, even though their profitability, investment and CAPEX requirements are completely different? Why does the government of "Modi turns a blind eye to the same?" Surjewala said.
"Is it not correct that the Supreme Court of India, in "Delhi Science Forum v. Union of India", clearly stated that 'the central government and the Telecom Regulatory Authority do not have to behave like sleeping trustees, but must function as active trustees? for the public good?" he said.
Surjewala asserted that the prime minister must answer to the people of India, including the 109 crore affected mobile phone users.
Bharti Airtel last month announced a 10-21 per cent hike in prepaid and postpaid mobile tariffs from July 3, a day after its larger rival Reliance Jio announced a hike in tariffs.
Later in the day, loss-making telecom operator Vodafone Idea (Vi) also announced its plan to increase mobile tariffs by 11 to 24 percent from July 4.
