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Reliance Communications says the tariff hike is aimed at generating greater profitability
Bad news for Reliance Communications (Rcom) customers - the telecom operator has announced raising tariffs by 20 percent across India, and the cutting 'promotional and concessional offers by as much as 65%'. The new tariff rates are applicable on both existing and new customers (GSM CDMA).
RCom says its large part of customer base uses Commitment Plans. The Commitment Plan 21 tariff has been increased from hiked from 1p per second to 1.2p per second while the Commitment Plan 45 tariff hiked from 1p per second to 1.2p per second.
Moreover, the Commitment Plan 48 now offers 160 Local On-Net Mins, against 500 mins earlier - a reduction of 65 per cent whereas the Commitment Plan 46 now offers 140 Local On-Net Mins, against 200 mins earlier - a cut of 30 per cent.
“Our Headline Tariff increase from 1.2 to 1.5 paisa per second in October last year did not see any traffic elasticity and there has been no fall in customer demand or change in usage patterns, as we successfully migrated our entire base to the Headline Tariff,” says Gurdeep Singh, Chief Executive Officer, Wireless, Reliance Communications.
“With the Indian telecom industry now heading for a phase of consolidation, with smaller operators shutting down or scaling down their operations and easing off hyper-competitive pressures, this will help pricing power move back to serious, long-term and pan-India scale operators and positively impact profitability.”
“We have now corrected all Commitment Plans across the country and have increased tariffs by between 20 per cent and 30 per cent,” he added.