Internet data tariff may dip 40 per cent in 2016
Increase in competition with the entry of new players may lead to the dip
New Delhi: Increase in competition with the entry of new players like Reliance Jio could prompt telecom firms to slash data tariffs by up to 40 per cent in the next 12-18 months, broadband access and network solutions provider UTStarcom said on Thursday.
UTStarcom, which offers mobile, broadband access and data network solutions firms, counts firms like state-run MTNL and BSNL as well as private players like Airtel, Reliance Com-munications and SSTL among its clients.
“Prices are elevated, while spectrum is limited, this is a challenge across the world ....Data tariffs (in India) could drop by 40 per cent in 12-18 months as pressure on operators increases to deliver better services and as newer players come in,” UTStarcom India co-GM Shalin Y Shah said.
He added that the company sees a huge opportunity in the Indian market.
“Given the commitment that the government has towards increasing Internet penetration in the country and delivery of digital services, there is multi-billion opportunity here,” he said.
India is the second largest revenue contributor for UTStarcom.