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Telecom companies may increase tariffs to meet their losses soon

Tuesday - January 21, 2020 2:54 pm , Category : BUSINESS
Telecom companies preparing to increase tariff
Telecom companies preparing to increase tariff

Mobile data and calls can be costly once again

JAN 21 (WTN) - As you are aware that recently the mobile network companies have increased their tariffs, after which the talking on mobile use of internet data on mobile in the country has become a bit more expensive than before. But if you think that maybe the mobile tariff will not be expensive this year, then your thinking is quite wrong. For your information, let us know that according to the information received from the media, telecom companies can increase their mobile tariff by 25 to 30 percent this year.
 
What is the whole matter, let's tell you in detail. Actually, according to the experts in the telecom sector, there has been a decrease in ARPU (Average Revenue per User) in India in the last three years. At the same time, the cost of data and calling on mobile in India is still quite low compared to other countries of the world. In such a situation, telecom companies like Vodafone-Idea and Bharti Airtel can increase the tariff once again to pay the remaining amount of AGR (Adjusted Gross Revenue).
 
Experts say that Vodafone-Idea has more difficulty in all telecom companies. It is also being said that if the company fails to pay the AGR, then it is feared that the company may also be out of the telecom sector. And if that happens, in the Indian telecom sector, except for state-owned BSNL, two other companies Bharti Airtel and Reliance Jio will survive.

According to experts in the telecom sector, in the last three years, the expenditure on services related to telecom of mobile users has reduced. Even after the recent increase in tariffs, Indian mobile users spend only 0.86 percent of their monthly revenue on their communication needs, which is much lower than four years ago. According to the figures, the cost of users on communication in India is very less compared to countries like the US, UK, Singapore, China, Philippines, Japan, and Australia.

And for all these reasons, telecom companies can increase the tariff by 25 to 30 percent this year. Earlier telecom companies Bharti Airtel, Vodafone-Idea and Reliance Jio have recently increased prepaid tariffs from 14 to 33 percent and this was the first such increase in three years. That is if the tariffs of mobile companies increase within the month of April, then the mobile tariff will be 40 to 50 percent more expensive than in November last year.
 
Here the telecom companies say that their ARPU could increase to Rs 160 in the next few quarters from the current Rs 120. In such a situation, if Vodafone-Idea does not get relief from the government on the outstanding amount, then the difficulties for the company will increase considerably. In such a situation, the company will have only two options. The first option will be that the company either increases its tariff or then the second option is that the company can close its business from the telecom sector.
 
Actually, since the launch of Reliance Jio, there have been historical changes in the Indian telecom sector. After Jio's entry in the telecom sector, the new phase of free calling and very cheap internet started, it soon brought a revolution in India. Statistics show that after the launch of Jio, smartphone sales in India have increased rapidly. At the same time, due to the cheap and free calling service provided by Jio, other telecom companies have also had to reduce their rates considerably. Now that mobile phone users in India have got used to the cheap internet data and calling, the telecom companies are hopeful that if they increase the tariff once again to reduce their losses, the Indian users will have to accept it.