COAI Defends Telecom Tariff Hike Push Amid Rising Cost-Revenue Gap

The Cellular Operators Association of India (COAI) has justified the telecom industry’s push for higher mobile tariffs, citing a widening financial gap between network deployment costs and revenue—now exceeding ₹10,000 crore and growing. Despite government support like Right of Way policies, operators face high infrastructure costs and mounting pressure to expand networks amid surging data demand. COAI Director General SP Kochhar highlighted that 70% of network traffic comes from global platforms like YouTube, Netflix, and Facebook, which use significant bandwidth but do not contribute financially to network upkeep—placing the entire burden on telecom operators. The association defended recent changes in entry-level data packs and stressed that while investments benefit Indian consumers, they should not become profit enablers for international digital giants without cost-sharing. This growing imbalance underscores the sector’s financial strain. The outcome will influence future tariff structures, operator sustainability, and regulatory discourse on equitable internet economics in India.