Monday, May 6, 2013

Reliance Communications further hikes tariffs by 20 percent across India

INDIA: Reliance Communications has further hiked tariffs by 20 percent across India. The new tariffs are to apply to all existing and new customers with immediate effect. Tariffs for all commitment plans have been hiked by 20-30 percent.

The move is aimed at bringing in greater RPMs and profitability. A large part of customer base uses commitment plans. There is also a sharp reduction in promotional and concessional offers. This completes the migration of entire base to headline tariffs of 1.5 paise.

“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,” said Gurdeep Singh, CEO, Wireless, Reliance Communications.

“We have now corrected all commitment plans across the country and have increased tariffs by between 20 percent and 30 percent,” he added.

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