Telecom Regulatory Authority chairman Pradip Baijal on Wednesday said the country's tele-density could grow three per cent next year if the government gives some concessions to the industry in the Budget and another round of access deficit charge cut is made.
"The tele-density grew 2 per cent last year and is expected to grow 2 per cent this year. We expect 3 per cent growth next year. All the operators are expanding and moving to new areas aggressively," Baijal told reporters on the sidelines of Mobile Expo in New Delhi. India's tele-density is at present at 8.59 per cent.
He said, "We expect some relief in the Budget. And if we are able to reduce ADC further, then tariffs will go down. So the market will grow and operators will be ready to go to rural areas and tele-density will grow which we expect to happen".
"We have already said in our order that in the next three-six months we will consider another round of ADC cut. We will carry out a consultation paper on that then. The order on the first round of ADC cut has just come," Baijal said.
Till the prices are not right for rural customers, tele-density will not grow. To be able to offer lower price, there should be concessions. We have a lot of expectation from the Budget, he said.
The TRAI order on ADC cut was announced on January 6 and it said that in the next thee to six months, the authority would look at the possibility of going for another round of ADC cut.
ADC is levy paid by private operators to Bharat Sanchar Nigam for serving unprofitable areas.