‘Telecom operators have huge headroom for tariff hikes’

India has the lowest tariff rates for telecom services out of comparable economies whose gross national income per capita (GNIpc) is lower than $10,000, ICICI Securities said in a report on Friday.

Telecom tariffs make up for 1.11 per cent of India’s GNIpc, which is only second to Brazil’s 0.94 per cent, however, the country’s GNIpc is 3.4 times that of India, making tariff rates there overall more expensive than in India’s lower per capita income economy, the report said.

India’s tariff in absolute terms is the lowest at just $2 compared to an average rate of $4. Developed economies such as the US have telecom tariff at 0.74 per cent of GNIpc, and absolute telecom services tariff plan at $43.6.