The government can soon provide great relief to the common people troubled by expensive mobile recharges, because the government has prepared a special mega plan under which telecom companies can reduce the prices of the plans.
Mobile recharge will be cheaper.
There's some significant and comforting news for the millions of mobile users across the country who are troubled by expensive mobile recharges. The central government has developed a comprehensive plan to ease this burden on the public's pockets, which could lead to significantly cheaper monthly mobile recharges. This government move could bring down the prices of plans offered by major telecom companies like Jio, Airtel, and Vodafone-Idea.
In fact, the government is seriously considering reducing taxes and fees on the telecom sector to make mobile recharges cheaper. Let's explore the government's full plan and how it will make your recharge cheaper.
What is special in the government's plan?
According to the Telecom Ministry and NITI Aayog, the government is working on two major fronts to make mobile services more affordable. Currently, telecom companies in India pay a significant portion of their total revenue, approximately 8 percent, to the government in the form of license fees and spectrum usage charges. The government plans to reduce this 8 percent fee to 3 to 4 percent. Reducing this fee will result in significant savings for companies, which they will then directly benefit by offering cheaper plans to customers.
Additionally, 5% of the 8% fee companies pay goes to a government fund dedicated to providing internet access to rural areas. The government already has a substantial amount deposited in this fund. Therefore, there are considerations of either stopping this 5% fee from companies altogether or significantly reducing it for the next few years.
Why was it necessary to make recharge cheaper?
Recently, in July, Jio, Airtel, and Vodafone-Idea significantly increased their mobile tariffs by 15 to 25 percent. This increase significantly increased popular 28-day, 56-day, and 84-day prepaid plans.
This inflation has had the worst impact on rural and underprivileged users who use their mobile phones solely for calling and basic internet access. Due to the high recharge rates, many people have either deactivated their SIM cards or reduced their recharges. This inflation has sparked widespread opposition from Parliament to social media, leading the government to develop this plan in collaboration with TRAI and companies to find a middle ground.
How much will the general public benefit?
Experts believe that after this tax cut, companies could reduce the prices of their existing plans by 10 to 15 percent. For example, a monthly plan that currently costs ₹299 could drop to between ₹250 and ₹260. Similarly, significant savings of ₹300 to ₹400 could be seen on annual plans.
