Why prices rise.

Call charges of cell phones are going to rise. RCOM has already raised rates while others are in the process of doing so. Strangely Bharti Airtel has reported an 89.1% rise in net profits in the fourth quarter to Rs 9.62 billion but says that it is forced to raise rates because of higher ' input costs '. The real reason is the huge ransom the Congress extracted by auctioning spectrum for 3G and then for 2G which had been cancelled by the Supreme Court. First, make vast amounts of black money by awarding 2G licenses out of turn and then make vast amounts of money for social schemes to win votes by auctioning the same licenses. The people pay in higher costs. Rather than issue a unified license for the whole of India the country is divided into circles and each circle is auctioned separately. Because of exorbitant pricing companies could not buy all the circles so they cooperated in providing roaming services in each others territories. That is common practice. There are many companies offering mobile services so when you phone from one provider to another they share what you pay for your call. Airlines have code sharing agreements. But the Congress said that cell phone companies cannot share each other's circles and levied penalties of Rs 12 billion. Companies appealed and the telecom tribunal, TDSAT has upheld the appeal and said that no regulation has been broken. Sanity restored. But the government is not giving up. The Department of Telecom says it will appeal in the Supreme Court. They will pretend that they are protecting taxpayer money but we end up losers in 2 ways. Appeals in front of the Supreme Court are very expensive so a lot of money will be wasted in lawyers and other fees. And for what? To levy huge penalties on telecom companies which they will pass on to us by raising charges. Not just telecom. Charges and taxes are killing this country. Airport charges and taxes are the highest in the world which restricts people from flying. Now the government wants operators of Delhi, Mumbai  and Hyderabad airports to pay Rs 4 billion for airport security. Infrastructure projects were awarded on payment of premiums which means that companies paid the government to be awarded projects. They did that by taking bank loans and, with the recession and soaring inflation, they are unable to repay their loans. To survive they increased charges massively. Tariffs at Delhi airport were increased by 346% in 2012. So we pay extra charges when we fly and banks have to be recapitalised with our money to save them form bad loans. In India, the people always lose.