Indian mobile users are finally coming to terms that the days of cheap mobile rates are all but over.
Telcos like Airtel, Vodafone Idea and Reliance Jio have hiked their mobile tariffs since the start of December, and there’s bad news for prepaid users with Airtel, who prefer going for the entry-level recharge packs. The telco is now charging Rs 10 more from its base level users in the country, which means shelling out more money for the entry-level offer.
So, previously, you had to make a minimum recharge of Rs 35 to continue using its service, but now, that figure has gone to Rs 45, which needs to be paid every month, in order to continue using the mobile network.
This was mentioned by Airtel to its prepaid users via an order, quoted in this Livemint article, which reads as follows: “It will be mandatory to recharge with a voucher of Rs 45 or above every 28 days to avail services.”
This increase might not mean a lot of those spending over Rs 200 every month, but the entry-level users are likely to find this hike pinch their pockets even more. Having said that, price hike in telecom tariff was inevitable.
The recent judgement from the Supreme Court, asking telcos to pay their AGR (Adjusted Gross Revenue) dues of over Rs 92,000 crore in the shortest timeframe possible.
This has already meant that a 40 percent tariff hike was announced by all major telcos, forcing mobile users to pay more for calling as well as internet usage.
These revisions are expected to add to telcos coffers, with industry analysts expecting a growth in their average revenue per user (ARPU) from less than Rs 120 to over Rs 140 per month in the coming quarters.
Which means, the telcos are not overtly concerned about the money (or lack of it) from the base segment of users. It remains to be seen if these increases force the users to switch their network in the near future.
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