Telecom talk Operators may hike Mobile Tariff said COAI

After Government decision hiking of below Rs.6/- on Diesel may effect on Mobile Tariff increase. Telecom Companies are one of the largest consumers of diesel which they required to power nearly 3.5 lakh towers in the country and force them to increase tariffs following the increase in diesel price.
 Director General of “Cellular Operators Association of India” (COAI) said that “We cannot absorb this cost and this will be forced automatically some part of it to the consumers”. 

Mobile companies spent 20% for diesel purchase out of 30% of their costs on towers.
Out of 3.5 lakh Telecom towers in India 70% are located in rural areas. In this course 40% towers met for power requirements and 60% by diesel generators with capacity 10-15 KVA consumes about 2liters of diesel an hour. The total consumption of diesel by telecom companies is around 2 billion liters a year.
If this situation Mobile companies indirectly forced to hike their tariff by introducing revised plans.