Data tariffs in India could drop by 40% in 12-18 months: UTStarcom

Increase in competition with the entry of new players like Reliance Jio could prompt telecom firms to slash data tariffs by up to 40 per cent in the next 12-18 months, broadband access and network solutions provider UTStarcom said today.

UTStarcom, which offers mobile, broadband access and data network solutions firms, counts firms like state-run MTNL and BSNL as well as private players like Airtel, Reliance Communications and SSTL among its clients.

"Prices are elevated, while spectrum is limited, this is a challenge across the world ....Data tariffs (in India) could drop by 40 per cent in 12-18 months as pressure on operators increases to deliver better services and as newer players come in," UTStarcom India co-GM Shalin Y Shah told reporters here.

He added that the company sees a huge oppotunity in the Indian market.

"Given the commitment that the government has towards increasing Internet penetration in the country and delivery of digital services, there is multi-billion opportunity here," he said.

India is the second largest revenue contributor for UTStarcom. Founded in 1991, the company got listed on NASDAQ in 2000. It has operating entities in Tokyo, Japan; San Jose, US; Hangzhou, China; and Delhi and Bangalore, India.

Its third quarter 2014 revenues stood at USD 32.3 million.

The company does not disclose country specific details.

"We are witnessing double digit growth here. We are actively engaging with government like IT Ministry as well as players BSNL and MTNL to understand how we can play a role in developing and deploying focused solutions for India," Shah said.