After tariff war over the past year, telecom companies are re-evaluating their tariff plans. As part of an effort to rejig their revenues, telecom operators have raised tariffs. Now, it seems like tariffs will only increase further from major operators. Reliance Jio, which offered data plans at prices never heard before in the market, is planning another hike. The operator wants its customers to pay more for 1GB of data in the next six months.
Reliance Jio plans another tariff hike
Reliance Jio has proposed to TRAI that wireless data prices are gradually increased to Rs 20 per GB from Rs 15 per GB currently. The hike is said to go into effect after six to nine months while suggesting floor rate for data prices. While advocating for TRAI’s intervention to prescribe floor price for wireless data service, Jio said voice tariff should continue under forbearance as before as the same will affect the masses and will be difficult to implement.
In its response to the consultation paper of TRAI on ‘Tariff issues in Telecom Services’, the company said the typical Indian consumer is very price sensitive and target floor price should be implemented in 2-3 tranches so as to minimize the impact of increase in tariff. It further said once data floor price is implemented, it should be uniformly implemented across all tariffs and applicable to all segments — individuals and corporates.
The Mukesh Ambani company said the data floor price should also cover the bundled tariffs with clearly defined elements. Reliance Jio has maintained consistent average revenue per user in the market. But it sees an opportunity to raise tariff further and thus increase per GB rate for its customers. It is still not clear how Jio plans to initiate this plan. In the past, Reliance Jio has faced backlash from its customers for tariff hike.
(Written with IANS inputs)