After more than a decade, telecom companies like Airtel, Vodafone Idea and Jio have announced tariff hike as they have incurred a heavy loss in the last quarter.
All three telcos have announced that they will raise the prices of their prepaid voice and data services. This will also end the tariff war which made the prices hit rock bottom and also lowest in the world. This is the first of its kind tariff hike in the last five years.
The price hike will be in the range of 15 to 47% and it will come into effect starting December 3, 2019, for Airtel and Vodafone Idea. However, Reliance Jio will revise the tariffs from December 6, 2019, onwards.
HOW RELIANCE JIO DISRUPTED THE TARIFF MARKET
Reliance Jio came into existence in September 2016 and it offered unlimited calls across multiple networks for local as well as in roaming. This gave rise to the price war and recently triggered a worse situation that caused heavy losses for the telcos Bharti Airtel and Vodafone Idea.
Despite the losses, The Supreme Court of India ordered Vodafone Idea to pay more than a whopping Rs. 50,000 crore if it wanted to survive in India. Taking this into account, Vodafone Group's chief executive, Nick Read sought the Indian government's intervention to save the company's India's operations as it almost headed towards bankruptcy.
WHAT ABOUT THE NEW TARIFFS?
Airtel's new prepaid plans will have the tariffs increased ranging from 50p per day to Rs 2.85 per day. This will also include data and calling benefits.
The company has merged Rs 169 and Rs 199 plans into one plan and now it will cost Rs 248 carrying the same validity of 28 days. Prepaid users can also enjoy 1.5 GB of data per day which is also 50% more than the previous plans.
However, Vodafone Idea has announced new prepaid plans with the validity of 2 days, 28 days, 84 days and 365 days.
Both the companies Airtel and Vodafone Idea have also decided not to provide unlimited calls. Now the outgoing calls will be capped to other networks based on the plans which offer 1000 to 12000 minutes.
Reliance Jio will launch "all in one" plans at a 40% higher price but will reap 300% more benefits, as per the company said. The 6 paise per call came into being last month.
In October 2019, based on the Supreme Court verdict, the telcos were ordered to pay at least Rs 92000 crore within three months. In response both the telcos, Airtel and Vodafone Idea have filed a plea to review the same.
Later, all the three operators said that they would hike the prices but this is not clear whether the government has forced them to do so.