India telco regulator seeks clarification on recent call rate hikes

India's telecommunications regulator has sought clarification from Bharti Airtel Ltd., Idea Cellular Ltd. and Vodafone Essar Ltd. on their recent moves to hike rates for some of their call services, Chairman J.S. Sarma said Thursday.

The Telecom Regulatory Authority of India will also seek similar clarification from Reliance Communications Ltd., Sarma told reporters on the sidelines of a regulatory meeting.

"We'll examine what are the reasons they hiked, whether this hike is [justifiable]...whether there is any substance in what the people [companies] are claiming," he said.

Bharti Airtel, India's largest mobile phone operator by subscribers, along with Idea and Vodafone Essar, the Indian unit of U.K. telecom major Vodafone Group PLC., hiked call rates for some of their services in July.

In August, second-ranked Reliance Communications said it had also raised call tariffs. All companies said they had to raise rates following the rising cost of operations.

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