We did not start the tariff war: Airtel

Bharti Airtel chairman Sunil Mittal today said the company had not initiated any tariff war with the launch of per-second billing and was merely responding to the market needs.

“The tariff war has not been launched by us... We responded as we did not have a choice. We have always said we would never lead the price war, but responding to the needs of the market is something that every sector and industry has to do,” Mittal said on the sidelines of India Economic Summit.

Asked how the tariff war will affect the industry, Mittal said, “In the next two quarters we will know where it is, so you will have to wait for the outcome.”

Most telcos like Airtel, Vodafone, BSNL and Aircel have launched per-second billing, charging customers on the basis of seconds instead of the earlier per minute charge.

Industry experts feel that per-second billing is going to adversely impact the bottom lines of the Indian telcos, which are already offering the lowest call rates.

Mittal added the government needs to reduce taxes if tariffs are to be lowered further.