Crony capitalism thriving under Modi: Congress on Jio, Airtel tariff hikes

The Congress on Friday slammed the Narendra Modi government, accusing it of ‘fleecing’ 109 crore cell phone users in India after telecom majors Reliance Jio, Airtel and Vodafone Idea announced a hike on their mobile tariff plans from this week.

Congress leader Randeep Singh Surjewala questioned the Centre’s intent, asking how the companies were unilaterally allowed to increase the rates without any oversight and regulation.

During a press conference today, he noted the substantial market share of over 91 per cent commanded by these three players and alleged the situation as a case of thriving “crony capitalism” under the Modi government.

 

THE PRIME MINISTER MUST ANSWER TO THE PEOPLE OF INDIA

Q1: How can private cellphone companies holding 92% of cellphone user marker share be permitted to unilaterally increase cellphone tarrifs by an additional Rs. 34,824 crore annually without any oversight or regulation by the… pic.twitter.com/QOTumQedNx

— Randeep Singh Surjewala (@rssurjewala) July 5, 2024

“Reliance Jio has 480 million users, Airtel has 390 million users, Vodafone Idea 220 million users… According to a report by the Telecom Regulatory Authority of India, the cell phone companies earn Rs 152.55 per month from each cell phone customer…,” he said.

How much tariff hike has been announced by Jio, Airtel?

He said that while Jio has hiked its rates from 12 per cent to 27 per cent, Airtel and Vodafone Idea have also followed the same by increasing prices from 11 to 21 per cent and 10 to 24 per cent respectively.

The Congress leader further said that the development has made it clear that the three companies consulted before hiking the prices within 72 hours.

हिंदुस्तान के सेल फोन मार्केट में सिर्फ तीन सेल फोन ऑपरेटर हैं।

• रिलांयस जियो - 48 करोड़ यूजर्स
• एयरटेल - 39 करोड़ यूजर्स
• वोडाफोन आइडिया - 22 करोड़ 37 लाख यूजर्स

ट्राई की एक रिपोर्ट के अनुसार सेल फोन कंपनियां अपने हर सेल फोन कस्टमर से 152.55 पैसे प्रति माह कमाती हैं।… pic.twitter.com/7jp7WO0ZcE

— Congress (@INCIndia) July 5, 2024

The consumers are expected to feel the pinch of the recent tariff hikes, which would put an additional burden on their pockets, amounting to Rs 34,824 crore annually.

Surjewala said that Jio and Airtel together have a consumer base of 870 million, which makes them a virtual duopoly. “Why is the Modi government turning a blind eye...?” Surjewala said, demanding accountability on the issue.

What does the Centre think on the mobile tariff hikes?

According to an earlier report by The Economic Times, an official associated with the matter said that the consumers may feel the burden of the price rise but it has happened after three years. The official noted that the Centre has decided not to intervene in this matter as the situation is not “critical” and that the Indian mobile tariffs are among the cheapest in the world.