According to an analyst at the research firm Ernst&Young, the telecom tariff is like to increase by as much as six times the 4.4 paisa estimated by the Telecom Regulatory Authority of India (TRAI), or by 26 paisa per minute if the impact of two factors is considered.
Analyst said that the TRAI did not take into consideration the cost of license extension and the cost of spectrum to be auctioned while estimating the increase in tariff during financial year 2013.
Partner in member firm of EY Prashant Singhal said, "TRAI's assessment does not include the cost of license extension in addition to the cost of spectrum to be auctioned. Taking into account, these two factors only, EY-COAI estimates that the impact on cost per minute will be more than six times the 4.4 paisa." The remarks come just two days before the meeting of Empowered Group of Minister of telecom.
The analysis from the research firm sheds more light into the ongoing deliberations into the matter after TRAI recommended a base price of Rs 3,622 per unit of airwaves that are to be auctioned to the telecom service providers in the country.
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