Tariff hike to bring relief to Telecom sector, Subscribers may opt for lower data plan : Care Ratings

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Biznext India : The tariff hike by Telecom Operators will help them raise their Average Revenue per User (ARPU) which will in turn provide some relief to their financial stress. However, with increased tariff the subscribers may opt for lower data plan, analyses Care Ratings.

“The price hikes of about 20%-40% announced by the incumbents will help them raise their Average Revenue per User (ARPU) level which, in turn, will provide some relief to the financials of the telcos. The subscribers can now expect an increase in their mobile bill with the new plans. However to subsidise the impact, some subscribers depending on their usage may move to 1.5 GB data plan per day from 2 GB data plan per day and subscribers of 3 GB data plan per day may move to 2GB data plan per day. On the other hand, with the announcement of FUP limit for making off net calls, we can now expect an increase in usage of OTT services for making calls” said Care Ratings.

It may be noted that, top telecom operators Bharti Airtel, Vodafone Idea and Jio on December 1st had announced revision of their tariff plans for their prepaid subscribers. The new tariff rates are higher by about 20%-40% compared to the old rates. While the revised plans of Airtel, Vodafone Idea will come into effect from 3 December, the revised plans of Jio will be effective from 6th December.

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