Following our report today, Reliance Communications has announced the increase in tariffs by as much as 20 percent for its special vouchers across India. Further to this, the company has also raised tariffs of the promotional and concessional offers by 65 percent, cutting down the offered calling minutes to a great extent. The new tariffs will apply to all existing and new customers with immediate effect.
RCom has increased the tariffs from 1p/sec to 1.2p/sec on local calls on its commitment plan 21 and 45. The tariffs for STD calls remain the same though. On other offers, including the commitment plans 48 and 46, RCom has slashed the free calling minutes by as much as 65 percent and 30 percent respectively. This means instead of 500 minutes of free local calls on STV 48, they will now get only 160 minutes of free local calling at the same price. Also, users of STV 46 will now get only 140 minutes instead of the 200 minutes they could avail earlier.
Reliance had last increased the tariffs in October last year, which they say had been accepted by the users. This action was required for them to bring in greater revenues and increase their profitability.
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. 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, Mr Gurdeep Singh, Chief Executive Officer, Wireless, Reliance Communications, said. 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.
|S. No.||Commitment Plan||Old Tariff / Offer||New Tariff / Offer||%-age Increase|
|3||STV 48||500 Mins Local On-Net||–||160 Mins Local On-Net||–||65%|
|4||STV 46||200 Mins Local On-Net||–||140 Mins Local On-Net||–||30%|