Govt nudges telcos, airlines to raise rates, shun bitter price wars

Move comes in view of big debt overhang in two sectors; companies unwilling

Telecom and airline companies, which have for long sought relief from the government to revive their operations, have got feelers that only a price hike could save them. Worried over the financial state of the two promising sectors, the government’s advice to them is to end the price war and go for a rational hike in rates, it is learnt.

Tariffs and fares are determined by the industry in the two sectors. But a top source in the government said telcos and airlines, on a path of self-destruction because of the price war, needed to make a reasonable increase. “That will