Reliance communications increased Mobile Call rates

In the earlier post on this blog discussed about what are the reasons for increase in “Mobile Tariff” and causes for decrease in Subscriber base for the last few months. Now normally Reliance Communications increased call rates by upto 25% under both Prepaid and Postpaid Services.
Most of the BSNL Customers are claiming that BSNL per second tariff is very high when comparing with other Private Operators. In this course Reliance Communications also become conscious by increasing from 1.2 paise to 1.5 paise per second tariff and stated that “Competitive intensity is tapering off and input costs are rising”.

The increase Telecomtariff will be implemented with immediate effect in four Telecom Circles, Bihar, Gujarat, Himachal Pradesh and Madhyapradesh.
Existing Customer of RCom by availing discounted charges will have to pay new charges when validity of their current plans ends. This revised tariff will be implemented across India in the next 30 days.
Remaining Telecom players will also follows the same and they are planning announce revised tariff very soon. This clearly indicates that there is no elasticity to these price changes. The new call rates have impacted neither new customer addition nor minutes of usage.
In the interim Idea Cellular has hiked call rates by 15-20% and reduced validity by 17% across three schemes (Rs.90, Rs.68, and Rs.37) in MP Telecom Circle.
All the Telecom Operators are offering cheap tariff for its customers under loss now they want to improve their financial position only by increasing mobile tariff. Going forward means improvement in the revenue and the profitability.