Telecom Operators in India Hike Tariffs By Up To 40%

Telecom operators in India, Airtel, Vodadfone Idea, Reliance Jio hike tariffs by up to 40%.

 

TELECOM

Telecom operators in India hike tariffs by up to 40%

Paying Through the Nose: Telecom operators in India including Bharti Airtel, Vodafone Idea and Reliance Jio have hiked mobile tariffs by up to 42%, effective December 3, in an attempt to amp up revenue, particularly following the recent SC AGR verdict that has increased their outstanding dues. Hindu BusinessLine

 

  • Vodafone Idea hiked its mobile tariffs by an average 20-30% for its pre-paid services. In certain data schemes, the tariff increases were as high as 42%. It has launched 16 new plans with various validities (2, 28, 84 and 365 days) and prices (ranging from Rs 49 to Rs 2,399), in an attempt to mitigate losses from Adjusted Gross Revenue (AGR) payout.
  • Bharti Airtel also hiked tariffs by up to 42%, with effect from December 3.
  • Jio has launched new all-in-one plans, effectively increasing tariffs by upto 40%. The hike is effective December 6.

 

However, would this tariff hike necessarily translate into more stability for the Indian telcos? As per Nitin Soni, Director, Corporates, Fitch Ratings, it seems the effective tariff increase is 25-35%, however, the actual tariff hike will depend on the preference of users on whether they go with the higher data allocation or they want to pay higher tariff over the short to medium term. More on this here.

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