Regulator vs Operators

• One key factor is that revenues for operators from voice calls are dipping considerably. According to a study by the Telecom Regulatory Authority of India (TRAI), tariffs for voice calls have dropped by more than 60 per cent over the last quarter. This has brought the average revenue per user (ARPU) to about Rs 400 a month.
• Though the telecom regulator feels this is still on the higher side and tariffs should fall further, operators are looking to make up for the dipping revenues through data services.
• But so far, even with EDGE deployments, operators have not been able to rake in much revenue from non-voice applications, except for the good old short messaging services (SMS).
• While EDGE and GPRS (2.5G) are good enough to act as catalysts for data users, they do not have the speeds required to provide a complete user experience. Operators are, therefore, looking to bring in 3G which will enhance the experience multiple times.