Telecom tariffs may go up after removal of roaming charges

After the government decision to remove the roaming charges for telephone operators, the telecom operators may go for hiking tariffs to stay profitable. The Telecom Minister Kapil Sibal has said that his ministry plans to remove the roaming charges by 2013. 

The telecom operators are facing the problem of decreasing revenues, especially average revenue per user (ARPU) and flat average revenue per minute (ARPM). The telecom companies also face the prospect for paying the 2G spectrum cost as well. Most of the losses to be incurred by the telecom companies would depend on the price they are going to pay for the 2G spectrum in the forthcoming 2G spectrum auctions. 

ARPU is the standard method to find out how the telecom companies are doing financially, and the same has been decreasing continuously.

Source: http://cablequest.org/news/telecom-news/item/957-telecom-tariffs-may-go-up-after-removal-of-roaming-charges.htmlSource: http://cablequest.org/news/telecom-news/item/957-telecom-tariffs-may-go-up-after-removal-of-roaming-charges.html