Tariff may come down – Not sure
by Thiyagarajan Maruthavanan (Rajan)
Contentsutra reports ( via Exchangemediia) that broadband tariffs are going down. According to this release of TRAI it is the target of 3 million is that of combined ( total private & PSU’s) with each of the category having a target of 1.5 million each.
Also as of september 2005 the total number of broadband subscribers is .61 million( 6.1 lakh). That means only 20% of the target has been achieved so far. Covering up the rest of 80 % in the last quarter (which most of the time is the slowest one) to meet the target is going to be humungous task. I am not sure how much price cut is going to help meet that target anyway. what is the(dis) incentive if they do not meet the target. So I really doubt the price drop because if they had some real strong incentive to meet targets the first 3 quarters of 2005 would have not produced such a lack lustre performance.
I wonder what is TRAI doing about all this.