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At a time, when India is on its way to becoming the second largest smartphone market in the world, we were expecting further cuts in mobile tariffs. But, we were wrong. Analysts are anticipating an increase in mobile tariffs in the wake of recent spectrum purchase for which <keyword id="6354776" type="COMPANY" weightage="20" keywordseo="Telecom">telecom</keyword> operators are doling out approximately Rs 1.10 lakh crore to the government. 
 
So, how much you would need to pay now? As per an ET report, mobile phone users could see their phone bills rise by 10-15% in coming months. 
 
Since the auction was structured in a way to ensure maximum revenue, this will put inevitable pressure for an upward revision in call and data tariffs, the financial daily reported. 
 
While Rajan Mathews, director general of the GSM industry body COAI, has hinted at 10% hike in tariffs, there are some experts who see mobile tariff going up by 15%. 
 But this won’t happen anytime soon. <keyword id="151709" type="PERSON" weightage="20" keywordseo="Prashant-Singhal">Prashant Singhal</keyword>, global head for telecom at professional services firm EY, thinks, “It could take another six months but operators will have to raise tariffs to meet the debt requirements." 
 
He further told ET, “Most of the increase in tariffs could come from voice, as it still constitutes over 75% of the core revenue for the sector.” 
 Escalation in debt servicing costs will force telecom operators to increase tariffs, revealed the ET report. It further explained, “What compounds the problem is that the top four operators, <keyword id="6354924" type="PERSON" weightage="20" keywordseo="Idea-Cellular">Idea Cellular</keyword>, Vodafone, <keyword id="6354287" type="CITY" weightage="20" keywordseo="Bharti-Airtel">Bharti Airtel</keyword> and <keyword id="46907" type="CITY" weightage="20" keywordseo="Reliance-communications">Reliance Communications</keyword> have already weeded out discounts from their networks.” 
 "Hence, there is very little room left for improving the realisation without a hike in headline tariffs," said Romal Shetty, the telecom head at <keyword id="50041" type="CITY" weightage="20" keywordseo="KPMG">KPMG</keyword>. 
 
Hemant Joshi of Delloitte Haskins and Sells said that the auctions will increase the debt burden of the industry by 70-80% of the spectrum price paid. "Balance sheets would get further leveraged and profitability and cash flow would be adversely impacted in servicing of principle and interest and amortisation of spectrum cost," he added.

Your mobile phone bills will rise by 15% this year, because the Govt is doling out airwaves to mobile phone operators

Indian mobile phone operators have warned that if they have to compensate their subscribers for call drops, they would be forced to increase their voice and data tariffs. 
 
Telcos are of the opinion that they are already investing a lot in 3G and 4G services, which is why they will not be able to bear the additional costs without any measures. They are also under pressure of <a href="http://www.businessinsider.in/Telcos-may-need-to-shell-out-more-for-site-installations/articleshow/50452437.cms">increasing tower-installation costs</a>. 
 
"Any increase in operator costs, of which penalties are a part, puts upward pressure on tariffs," Rajan S Mathews, director general of Cellular Operators Association of India, told ET. COAI represents telecom companies operating on GSM tech such as Airtel, Vodafone and Idea. Companies using CDMA or dual technology, such as Tata and Reliance, are represented by the Association of Unified Service Providers of India (AUSPI). 
 <keyword id="6356988" type="PERSON" weightage="100" keywordseo="TRAI">TRAI</keyword> has also got <a href="http://www.businessinsider.in/TRAI-gets-government-support-regarding-call-drop-compensation-debate/articleshow/50451971.cms">the support of government</a> after it reminded the mobile companies of the impending <a href="http://www.businessinsider.in/TRAI-reminds-telecom-operators-to-compensate-customers-for-call-drops/articleshow/50436405.cms">compensation roll outs</a> of Rs 1 for up to three calls a day. The compensation were expected to begin from January 1st but the mobile companies have said that they would wait for the court’s final decision before that. 
 
<a href="http://www.cellphonebeat.com/wp-content/uploads/2013/12/call_tariff_hike_ubsln.jpg">Image source</a>

Telcos attempt an even deal; threaten to raise tariffs if call drop fine imposed

Jio's new ₹599 ‘all-in-one’ subscriptions offer the biggest bang for your buck

<ul><li>Yesterday, India's IT Minister tweeted that the country's data plans continue to be the cheapest in the world despite a hike in tariffs by telecom operators.</li><li>Data shows while India will continue to have one of the least expensive data costs in the world — it will no longer be the cheapest.</li><li>Kyrgyzstan now has the lowest cost per GB in the world at $0.27.</li></ul>India's mobile tariffs are no longer the cheapest in the world after an almost 40% hike in subscription rates by the country's <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-may-still-have-the-cheapest-plan-on-offer-as-airtel-and-vodafone-idea-have-a-lead-on-telecom-tariffs/articleshow/72335722.cms">leading telecom operators</a> — Vodafone Idea, Bharti Airtel and Reliance Jio — despite IT Minister Ravi Shankar Prasad's assurances. 
	
	
	
	
	
	<div type="twitter" handle="rsprasad" handlename="Ravi Shankar Prasad" image="http://pbs.twimg.com/profile_images/727848709518675968/xebahww0_normal.jpg" favoritecount="661" retweetcount="294" status="India’s Mobile Internet rate per GB remains by far the lowest in the world. UK based https://t.co/8ZGRuuOuWF which… https://t.co/cMBb1O5okt" createdat="1575285902000" id="1201462273224531968"></div>













 Before the hike in prices, the average cost per 1GB of data in India was $0.26, according to <a href="https://www.cable.co.uk/mobiles/worldwide-data-pricing/">cable.co.uk</a>. Accounting for a 40% increase, the cost will now lie at around $0.36 per GB — making India's data consumption more expensive than Kyrgyzstan. As per Business Insider's calculations, even if the increase is limited to 30%, as <a href="https://m.economictimes.com/industry/telecom/telecom-news/reliance-jio-plans-could-be-20-cheaper-than-other-telcos-report/amp_articleshow/72335807.cms">some plans claim</a>, the cost will be at $0.33 per GB — above Kyrgyzstan's rock-bottom prices of $0.27. 
 
 
 
 
 
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 And, data is only one facet of the increase in prices. Customers will also have to bear the burden of being charged to place calls outside their networks since most telecom plans no longer provide ‘<a href="https://www.businessinsider.in/tech/apps/news/jios-new-recharge-plans-can-be-confusing-heres-how-to-figure-them-out/articleshow/72257183.cms">unlimited calling</a>'. Data will still be pretty darn cheap Even though data rates in India might not be the cheapest — they're still among the lowest in the world. Other developing nations around the world bear much higher tariffs. In Brazil, for instance, the cost of data is 12 times more expensive at $3.50 per GB. And, in China — one of India's neighbors — 1GB costs $9.89 on an average. Data in developed nations like the United States and Canada costs in excess of $12 per GB. Zimbabwe telcos charge $75.50 for 1GB on an average, making its data the most expensive in the world. See also: <a href="https://www.businessinsider.in/business/corporates/news/jio-will-raise-tariffs-after-airtel-and-vodafone-idea/articleshow/72138425.cms">Mukesh Ambani joins his peers to end the cheap data party for Indians</a> <a href="https://www.businessinsider.in/tech/apps/news/jios-new-recharge-plans-can-be-confusing-heres-how-to-figure-them-out/articleshow/72257183.cms">Jio's new recharge plans can be confusing — here's how to figure them out</a>

Fact check: India's mobile tariffs aren't the cheapest in the world anymore

New Delhi, Dec 2 () Increase in prepaid plan prices by telecom operators will help them raise revenues and the companies may soon hike prices for postpaid plans as well, according to sector analysts.
 The analysts also said Reliance Jio's plans are expected to be cheaper as compared to its rivals even after 40 per cent hike in mobile call and internet charges announced by the company.
 This is the first hike over the past five years in the country's telecom sector that is facing tariff war with voice calls becoming almost free in 2016 and steep 95 per cent fall in data prices to Rs 11.78 per GB at present from Rs 269 per GB in 2014.
 They said the hike of up to 50 per cent in prepaid plan prices by Bharti Airtel and Vodafone Idea (VIL) will help the operators increase their revenues.
 "Over the next few days, we expect Bharti (Airtel) and VIL to announce tariff changes in their postpaid plans as well," Emkay Global said in its report.
 Bharti Airtel and VIL announced 15-50 per cent rise in 'unlimited' usage category prepaid plans. The new plans will come into effect from December 3 and existing customers under these plans will have to pay the new rates after they complete six months in their existing plan.
 "Bharti Airtel and Vodafone Idea have announced tariff hike of sub-25 per cent for Rs 349 and below plans, where about 60 per cent of subscribers reside. We believe average impact on ARPU (average revenue per user) would be 25-30 per cent due to tariff hike," Axis Capital said.
 Kotak Institutional Equities said the hike in mobile rates is likely to enhance Bharti Airtel's earnings before interest, taxes, depreciation and amortisation in the range of Rs 8,000-9,500 crore and VIL about Rs 7,000-8,500 crore.
 Goldman Sachs estimates VIL's revenues could be about 22 per cent higher, assuming a subsequent hike even for postpaid, compared to Rs 11,146 crore that company reported in the second quarter of current financial year.
 "For Bharti Airtel, assuming the announced tariff details, revenues could potentially be 24/12 per cent higher for wireless/consolidated," Goldman Sachs said.
 Bank of America Merrill-Lynch said Jio may raise prices by 40 per cent only on the select packs but still it may continue to be cheaper than its competitors.
 "We think the incremental 300 per cent benefit which Jio is talking about is by offering more data allowances. In our view, it incrementally doesn't entice users much beyond 1.5 GB. Even after these hikes, we believe Jio will continue to be 15-20 per cent cheaper than the incumbent operators," Bank of America Merrill Lynch said.
 Emkay Global said content offering of telecom operators will play important role in retention of subscribers if data consumption pattern is not impacted by tariff hikes.
 From December 3, customers of these two companies will have to shell out a minimum of Rs 49 to make calls, access the internet on mobile and stay connected for four weeks.
 Telecom companies' move to raise mobile tariff follows the Supreme Court judgment, on October 24 this year, upholding the government's method of calculating revenue share that it should get from earnings of service providers.
 Vodafone Idea last month reported a consolidated loss of Rs 50,921 crore -- the highest ever loss posted by any Indian corporate -- for the September quarter on account of liability arising out of the Supreme Court's order.
 The company has estimated liability of Rs 44,150 crore post the apex court order, and made provisioning of Rs 25,680 crore in the second quarter this fiscal.
 Vodafone Idea which is reeling under massive debt of around Rs 1.17 lakh crore had earlier cited acute financial stress on the company behind the decision to raise mobile call and data charges.
 Bharti Airtel has posted a staggering Rs 23,045 crore net loss for the second quarter ended September 30, due to provisioning of Rs 28,450 crore in the aftermath of the SC ruling on statutory dues.
 According to government data, the liabilities in the case of Bharti Airtel add up to nearly Rs 35,586 crore, of which Rs 21,682 crore is licence fee and another Rs 13,904.01 crore is the SUC dues (excluding the dues of Telenor and Tata Teleservices).
 The government is currently not considering any proposal on waiver of penalties and interest on outstanding licence fee based on adjusted gross revenue (AGR), or on extending the timelines for telecom companies to pay up their statutory dues.
 Credit rating agency Moody's Investors Service said adjusted gross revenue dues on Bharti Airtel are credit negative for the telecom operator despite a two-year moratorium given by the government on spectrum payment and the firm's plan to raise mobile call and data charges.
 The credit rating agency said that in case Bharti Airtel is required to make a payment of Rs 34,260 crore immediately and in full, the debt level of the company will rise 25 per cent if the company raises entire money to make payment through debt instruments. PRS PRS HRS

Hike in prepaid plan prices to raise telecom firms' revenues: Analysts

New Delhi, Dec 2 () A day after India's top mobile phone service providers announced an increase in call and data charges, Telecom Minister Ravi Shankar Prasad on Monday said mobile internet rate in the country remains by far the lowest in the world.
 Bharti Airtel Ltd, Vodafone Idea Ltd and Reliance Jio Infocomm Ltd had on Sunday announced the rise in the cost of subscriptions to their plans with effect from Tuesday.
 "India's mobile internet rate per GB remains by far the lowest in the world. The UK-based http://cable.co.uk which compared mobile data plans around the world has indicated this," Prasad tweeted posting the comparative chart made by the price comparison site in March 2019.
 The average price of USD 0.26 for one gigabyte (GB) in India compares to USD 6.66 in the UK and USD 12.37 for the same amount of data in the US, the study, which compared mobile data charges in 230 countries, had shown in March 2019, which was posted by Prasad on Monday.
 The global average is USD 8.53 for 1 GB.
 "Government of @narendramodi inherited the high cost of the mobile internet from UPA, which was as high as Rs 268.97 per GB in 2014. Now it is Rs 11.78 per GB, as per TRAI," he said in another tweet.
 Bharti Airtel hiked prices of its most expensive plan by as much as 41 per cent effective December 3, while Reliance Jio raised them by as much as 40 per cent from December 6. Vodafone Idea increase would also be effective from December 3.
 "The mobile phone mess was the scam-tainted legacy of UPA. We have set it right, expanded mobile telephony with consumer satisfaction. Also committed to making BSNL/ MTNL professional and profitable," Prasad said in another tweet.
 The hike in tariff comes weeks after the Supreme Court upheld the government's definition of adjusted gross revenue (AGR), which is the basis on which telecom companies' licence fees and spectrum usage charges are paid. Bharti Airtel, Vodafone Idea and other telcos face as much as Rs 1.47 lakh crore in past liabilities following this ruling.
 Vodafone Idea and Bharti Airtel have announced new tariffs effective December 3 where headline data plans are priced 15-47 per cent higher. Both have removed their 1 GB per day plans (Rs 399 for 84 days) keeping just the 1.5 GB a day 84-day plan that itself is now 30 per cent more expensive at Rs 599 (from 459 before).
 Vodafone Idea though has retained a Rs 379 plan which gives 6 GB data for 84 days.
 Jio would raise tariffs by up to 40 per cent from December 6 and also with 300 per cent more benefit.
 While Airtel and Vodafone Idea have increased the pricing at the lower end voice-centric plans from Rs35/Rs65 to Rs49/Rs79, the pricing for 28-day unlimited combo plans have increased by 15-30 per cent. The pricing for the most popular 84-day unlimited plan has increased by 30-36 per cent.
 Following in Jio's footsteps, both Bharti Airtel and Vodafone Idea have also introduced caps for off-net calls as part of their 'unlimited calling' benefits.
 According to Credit Suisse, post the tariff hikes, Bharti Airtel and Vodafone Idea's plans are at a 20-60 per cent premium over Jio's October 2019 'All-in-plans'. "We think after Jio's announced tariff hikes, the premium is likely to decline to 10-20 per cent for the more popular tariff plans."
 It expected more tariff increases over the next 12-18 months. ANZ HRS

India mobile internet rates remain lowest in world: Prasad

New Delhi, Dec 3 () Telecom operators have proposed sector regulator Trai to fix a minimum price for mobile internet as no company on its own is in a position to decide on it due to fierce competition in the market, industry body COAI said on Tuesday.
 The Cellular Operators Association of India (COAI), in a letter to the Telecom Regulatory Authority of India (Trai), said that Reliance Jio, Bharti Airtel and Vodafone Idea have agreed that the data tariffs should be regulated, a move which was vehemently opposed by the industry players in the past.
 However, private telecom operators want call rates to continue to remain unregulated.
 "All the current telecom service providers in the private sector, namely Bharti Airtel Limited, Reliance Jio and Vodafone Idea limited are in complete agreement that Trai be requested to regulate tariffs by setting floor price for data services," COAI Director General Rajan S Mathews said in the letter dated December 3, 2019.
 The development comes following the three private telecom operators, which account for 90 per cent market share, raising mobile call and internet rates by up to 50 per cent from December 3 onwards.
 This is the first hike in the past five years in the country's telecom sector facing tariff war, with voice calls becoming almost free in 2016 and a steep 95 per cent fall in data prices to Rs 11.78 per GB at present from Rs 269 per GB in 2014.
 "We further submit that the tariff correction in the current level of fierce competition is not possible by any service provider voluntarily and thus the only option available is prescription of a minimum tariff for mobile data service by the authority," Mathews said.
 He said that a tariff correction for data services will not be out of sync with global trends as India has the lowest data tariffs globally, estimated to be around 50 times lower than the price in major developing and developed countries.
 Telecom Minister Ravi Shankar Prasad on Monday said mobile internet rate in the country remains by far the lowest in the world.
 Citing a March 2019 study which compared mobile data charges in 230 countries, Prasad said the average price of USD 0.26 per 1 gigabyte (GB) data in India compares to USD 6.66 in the UK and USD 12.37 for the same amount of data in the US.
 "...the Authority would be aware that unlike mobile data, voice services are considered as essential services especially by the subscribers at bottom of pyramid and therefore would need to be continued under the present forbearance regime," Mathews said.
 Mobile call and mobile internet rates are not regulated at present and are decided by the companies on their own.
 While the industry vigorously opposed regulating phone services rates in the past, Mathews in the latest communication to the Trai said that regulation of data price by setting floor price should be done as soon as possible.
 The move to raise mobile call and internet rates follows the Supreme Court judgment on October 24 this year, upholding the government's method of calculating revenue share that it should get from earnings of service providers.
 Vodafone Idea last month reported a consolidated loss of Rs 50,921 crore for September quarter -- the highest ever quarterly loss posted by any Indian corporate -- on account of liability arising out of the Supreme Court's order.
 The company has estimated liability of Rs 44,150 crore post the apex court order, and made provisioning of Rs 25,680 crore in the second quarter this fiscal.
 Vodafone Idea, which is reeling under massive debt of around Rs 1.17 lakh crore, had earlier cited acute financial stress on the company behind the decision to raise mobile call and data charges.
 Bharti Airtel had posted a staggering Rs 23,045 crore net loss for the second quarter ended September 30 due to provisioning of Rs 28,450 crore in the aftermath of the SC ruling on statutory dues.
 According to government data, the liabilities in the case of Bharti Airtel add up to nearly Rs 35,586 crore, of which Rs 21,682 crore is licence fee and another Rs 13,904.01 crore is the SUC (spectrum usage charges) dues (excluding the dues of Telenor and Tata Teleservices).
 The government is currently not considering any proposal on waiver of penalties and interest on outstanding licence fee based on adjusted gross revenue (AGR), or on extending the timelines for telecom companies to pay up their statutory dues. PRS RVK

Telcos propose Trai to regulate data tariff by fixing minimum price

New Delhi, Dec 17 () In a big boost to Airtel and other old telcos, regulator Trai on Tuesday deferred by one year the scrapping of the charge paid by mobile phone users for calls made to rival networks and initiated talks to prescribe minimum or floor price for call and data, effectively ending free call regime.
Bharti Airtel and Vodafone Idea, which are staring at a liability of thousands of crore in unpaid past statutory dues following a Supreme Court ruling, had been through their association pitching with the government for fixing of a floor rate for calls and data. 
Their association had also been lobbying for extending the 6 paise per minute interconnect usage charge (IUC).
On Tuesday, Trai announced that telecom operators will continue to pay 6 paise per minute for every outgoing call made to their competitors' network till December 31, 2020. These charges are proposed to become zero from January 1, 2021.
Telecom industry body COAI sees it as a relief for the debt-ridden sector and asserts that continuing with six paise mobile call termination charge will not have any impact on consumers as operators have already absorbed this charge in their recently increased mobile call and data rates.
"For wireless to wireless domestic calls, termination charge would continue to remain as Re 0.06 (paise six only) per minute up to December 31, 2020," Trai said.
Within hours of IUC announcement, TRAI released a consultation paper to fix minimum or floor rates for mobile phone calls and data, a move that will effectively end the regime of free calling and dirt cheap data.
The telecom call and data rates are at present under forbearance or not regulated. However, private telecom operators unanimously approached the Telecom Regulatory Authority of India (Trai) to fix minimum price for mobile internet rates.
The outcome is likely to lead to further hike in mobile call and data cost as industry wants average revenue per user to reach Rs 300 per month from about Rs 125 at present over period of two years - better revenue realisation per user will offer a much needed breather to stressed telecom industry where debt levels have soared to Rs 7.8 lakh crore.
Trai in the "Consultation Paper on Tariff Issues of Telecom Services" said that there have been minor adjustments by the telecom service providers (TSPs) to their tariff offerings since the initial announcement.
"It is to be seen whether further readjustments in tariffs will be done in view of the high level of competition in the market. In such a scenario, where the TSPs have recently announced a substantial hike in tariffs, it needs to be discussed whether there is still a need for any regulatory intervention," Trai said.
The development comes following the three private telecom operators, which account for 90 per cent market share, raising mobile call and internet rates by up to 50 per cent from December 3 onwards. This had effectively marked the first hike in the five years in the country's telecom sector that had been engaged in a brutal tariff war -- voice calls had become almost free in 2016 and a steep 95 per cent fall had been seen in data prices (to Rs 11.78 per GB at present from Rs 269 per GB in 2014).
While telecom operators requested for minimum price for mobile data only, the regulator has also sought public comments on fixing minimum price for phone calls by January 17 and counter comments by January 31. 
Rajan S Mathews, Director General of COAI welcomed Trai's move to initiate a consultation on floor pricing and said it will ensure that the telecom industry remains healthy and robust. The move will also provide confidence to investors to make available needed resources, he said.
"In our previous submission to Trai, we have highlighted that tariff correction is necessary for improving the financial health of the industry. The only option available is for the regulator to intervene and correct the anomalous pricing situation prevailing in the market place," Mathews said. PRS MBI ANZ MKJ

Trai's consultation on floor price, decision on IUC extension spells relief for Airtel, Voda

NEW DELHI: <keyword id="6354287" type="CITY" weightage="40" keywordseo="Bharti-Airtel">Bharti Airtel</keyword> could raise basic call rates for the first time in five years as it battles increasing input costs, a move that would make it the second major telco to do so after <keyword id="46907" type="CITY" weightage="40" keywordseo="Reliance-communications">Reliance Communications</keyword> raised them for prepaid users last month. 
 
On the back of a robust earnings performance by Bharti in the March quarter, this would strengthen the notion that the telecom industry is on firmer financial footing after a damaging tariff war in 2009-11. 
 
Analysts, however, said that while India's largest telco needs to raise call tariffs to improve its financial health, the scope of the increase could be limited as its two top rivals - No. 3 Idea Cellular and No. 2 Vodafone India - have clearly said they won't touch the basic rate, or the call rate without discounts, and are happy just cutting freebies offered to users. 
 "The fact is that these levels of voice pricing are absolutely unsustainable" with inputs costs going up, including those for rolling out <keyword id="50752" type="UNKNOWN" weightage="40" keywordseo="Networks">networks</keyword>, optical fibre, spectrum and diesel, Bharti Airtel's CEO for India and South Asia Gopal Vittal told reporters at a press conference. Diesel is needed to run generators at mobile tower sites. 
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"We have hitherto avoided taking headline tariffs (up) but at some point there may be an opportunity to raise headline tariffs," he said, adding however that the priority for the company remained reducing discounted minutes. 
 
Phone bills for postpaid users typically comprise basic call charges, also called headline rates, on which discounts such as free minutes are given to users based on their tariff plans. Prepaid users, who still make up over 95% of the mobile phone user base, typically get discount vouchers for a specific time period. 
 
By decreasing validity on prepaid vouchers, carriers force customers to use up talk time faster. By increasing headline voice tariffs, the minimum charge for a call paid by both prepaid and postpaid customers will rise. 
 
Higher rates allow operators to increase cash flow, thus allowing investments into improving networks and expanding operations. 
 
Several telcos have been quietly cutting discounts over the past three or four quarters, but have been leaving the basic rate untouched for fear of losing subscribers to competitors or smaller operators that offer cheaper tariff plans. However, the fourth-ranked Reliance Communications raised its headline tariffs in mid-April for prepaid customers by up to 20%, although it left postpaid headline rates untouched. 
 
Vittal's comments came a day after India's largest mobile phone company announced strong fourth-quarter results. Net profit jumped 89% from a year earlier on a 13.5% growth in revenue. 
 
While key parameters such as average revenue per user grew, the average realised rate from calls has been largely flat in the past two quarters, a trend seen in the Idea results as well, leaving some worried. 
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Analysts explained that while telcos, especially the major players, had been cutting discounts in circles where they are the leaders or the No. 2, they are loath to do the same, or have in fact given additional discounts, in areas where they aren't strong in a bid to attract or retain subscribers. Thus, the net effect on overall realised rates has been somewhat neutral to slightly lower in recent times. 
 
Realised rate is what a telco actually gets after all discounts and associated costs. 
 
Idea cut discounts last year, but this year in its weaker circles has once again leveraged pricing to acquire customers, CEO Himanshu Kapania said, due to which the overall realised rate was down by 2.5% across the country. 
 
"Over time we expect to fix that," he said, but ruled out raising basic rates. 
 
A Mumbai-based analyst said Bharti will be keeping a close eye on moves by Idea and Vodafone in the event of any move on headline rates. 
 
Vodafone declined comment but has said previously that it will work on discounts, without touching basic rates. 
 
To be sure, given that the industry seems to have put the tariff war behind it and is stabilising, the top telcos will eventually want to go ahead with increasing headline tariffs later this year, analysts said. 
 
The situation could change dramatically if Mukesh Ambani-owned Reliance Jio Infocomm enters the industry with a disruptive pricing offer. It's expected to launch voice and data services later this year. 
 
As things stand, "It's more of a do or die situation (for carriers) because this is the only industry which has seen the continuous downward movement of tariffs to a level that a per-minute call is cheaper than a glass of water," said Prashant Singhal, national telecom leader at Ernst &amp; Young. 
 
He expects headline tariffs to be higher by 15-20% by May 2015, though the increase would be gradual. "If headline tariffs are close to 60 paise per minute, the realised rate is around 30 paise, which is not sustainable," given the rising cost of operations. 
 
Bharti's strategy going forward is clear. It will focus on stripping out low revenue generating users, bringing in more postpaid customers who generate higher revenue and improve voice realisations, apart from investing in better data networks and driving cost efficiency, Vittal said. 
 
"With more rational competition, fewer competitors and rising data volume, I see headline tariffs going up marginally. I don't want to give a timeline to it but I don't see a reason why companies need to wait for a couple of quarters (to raise headline tariffs)," said Jaideep Ghosh, head of telecoms practice at KPMG. 
 Uninor, the Indian unit of Norway's <keyword id="6359476" type="CITY" weightage="40" keywordseo="Telenor">Telenor</keyword>, said it will take note of any changes in industry tariffs and take appropriate steps if needed. 
 <keyword id="6365707" type="CITY" weightage="40" keywordseo="UBS">UBS</keyword> believes Bharti Airtel's stock could be re-rated significantly over the next 12 months if mobile voice rates continue to go up, data consumption and revenue rises thanks to cheaper smartphones and the "regulatory outlook continues to improve".

Bharti Airtel To Look At Raising Headline Call Rates

New Delhi, Dec 2 () Rise in the price of mobile calls and internet rates is beneficial for customers, will boost government revenue collection and help in creating jobs by improving financial health of the sector, telecom industry body Cellular Operators Association of India said on Monday.
 Telecom operators Bharti Airtel and Vodafone Idea have announced to raise mobile calls and internet prices for prepaid customers by to 50 per cent from December 3, while Reliance Jio has said it will roll out new plans with 40 per cent higher rates on December 6. 
 "This (rate hike) is going to be in the benefit of customers, government and the industry. From customers' perspective, these tariffs will enable operators to do required and necessary improvements in the telecom network which has been languishing because of financial stress in the sector. In the upcoming short period, we should begin to see improvement in customer experience and services," COAI Director-General Rajan Mathews said. 
 This is the first hike in the past five years in the country's telecom space that was facing tariff war, with voice calls becoming almost free in 2016 and steep 95 per cent fall in data prices to Rs 11.78 per GB at present from Rs 269 per GB in 2014.
 From Tuesday, customers of Bharti Airtel and Vodafone Idea will have to shell out a minimum of Rs 49 to make calls, access the internet on mobile and stay connected for four weeks.
 Mathews said that due to a decline in mobile services rates, government revenues have also declined. 
 "We believe this will help the government in its collection at a time when collections of the government are being challenged," he said.
 According to official data, the telecom sector's gross revenue fell about Rs 41,000 crore in three years on account of a dip in mobile services rates.
 The telecom sector's gross revenue in 2016-17 was Rs 2.65 lakh crore, which had reduced to Rs 2.46 lakh crore a year later and then to Rs 2.24 lakh crore in 2018-19.
 Adjusted gross revenue, on which the government earns revenue, also declined by around Rs 46,000 crore during the same period.
 Mathews said the industry has been in doldrums and the hike in tariff will bring needed financial wherewithal to enable them to make investments.
 He said Prime Minister Narendra Modi's vision of Digital India requires over USD 100 billion worth of foreign investments into the country and the new tariff will help the sector in attracting foreign funds and help domestic banks in lending to the industry.
 "This will help operators to begin to hire again. We have been losing employees because of our inability to retain them. Also, because several of operators have exited the business. With this particular move, we see financial health improving. This means better remuneration for employees, better purchasing power to them," Mathews said.
 Telecom Sector Skill Council CEO Lt Gen S P Kochhar said the hike in tariffs will provide companies to invest in expanding optical fibre network and rolling out telecom networks. 
 "As per our estimates, four persons at every gram panchayat level will be required to maintain telecom networks. Laying fibre is a must for the country and it will create jobs on the ground. However, in the long term, we see a need for high-end jobs in the telecom sector and most of the manual jobs will either be automated or outsourced," Kochhar said. PRS HRS

Tariff hike good for customers, to boost govt revenue, create jobs: COAI

New Delhi, Mar 3 () Batting for fixation of minimum rates for mobile data services, industry body COAI has told the telecom regulator that floor price should be applied uniformly to all categories of subscribers and for all type of tariff plan offerings. The association said while there is an urgent requirement of a floor price for data services, it does not see any such need for voice calls and voice tariffs should remain under forbearance.The COAI has said that fixation of a floor price, despite the recent hike in tariffs, is the way forward to guarantee minimum revenue for the telcos to ensure the viability and orderly growth of the sector."There is a need to fix the floor price for mobile data services...At this stage we also submit that floor price structure must have a subscription/connectivity charge irrespective of use even for voice," Cellular Operators' Association of India (COAI) said in its latest submission to telecom regulator TRAI on 'Tariff Issues of Telecom Services'.With regard to data services, the COAI said it is of the view that floor price should be applied uniformly to all categories of subscribers and for all type of tariff plan offerings. However, the COAI has not given its own estimates on what the ideal floor price should be, leaving it to operators to give their individual calculations and suggestions.The association has highlighted the need for TRAI to intervene with regulation of prices citing the existing "challenging circumstances"."We are of the view that the current pricing scenario in the telecom sector qualifies on all criterion for TRAI intervention," it said.Whenever there has been excessive competition, globally, the concept of floor prices has been used as a tool to regulate the market, it said.The COAI said that its member operators are committed to meeting the ambitious targets set for the telecom sector by the government, but added that it would require substantial investments for spectrum, technology, equipment and fibre backbone, to meet the service quality requirements. "The telecom industry is currently under financial stress and will not able to generate funds for making such investments as all sources of investments namely equity infusion, loans and surplus of the operators have dried up," it rued.Fixing floor price for the data services will have a positive impact on the sector as it would provide stainability and recover costs, remove the financial stress and enable competition in market, and moreover help in investments. "...it is recommended that the floor price should be fixed only for an interim period, say period of two years, after which the regulator may review the tariff regime. The floor price will help the sector to stabilise in terms of business viability and the regulator may review the floor tariff regime post that," COAI said adding that TRAI can always choose to review it before the said period, if the need arises. MBI MR

Floor rates needed for mobile data services, current scenario justifies TRAI's intervention: COAI

New Delhi, Mar 28 () Debt-ridden telecom operators are likely to opt for three-month moratorium to avoid cash crunch during the lockdown, industry body COAI said on Saturday.The telecom operators have spoken in favour of raising mobile call and internet rates at the earliest, however, they will keep the prices stable during the lockdown period, COAI DG Rajan S Mathews told ."There is debt of around Rs 1.6-2 lakh crore that telecom operators owe to Indian banks. They will opt three-month moratorium in loan repayment to help them maintain cash flow. It is a relief for them," Mathews said.The RBI on Friday allowed banks to put on hold EMI payments on all term loans for three months, slashed the cost of fresh borrowing by cutting policy interest rate by steepest in more than 11 years and infused a massive Rs 3.74 lakh crore liquidity as it joined the efforts of the government to counter the economic fallout of coronavirus pandemic.Cellular Operators Association of India (COAI) also allayed fear of hike in tariff by the telecom operators."Telecom companies understand market situation. They will give tariff stable for now," Mathews said.Telecom operators have been asking for fixing minimum tariff for call and data rates. Vodafone Idea has suggested that the mininum rates should be fixed starting April 1, 2020.Mobile subscribers get access to 4G data at a price as low as Rs 3.5 per GB but if the floor price is fixed as demanded by telecom operators, mobile internet prices will rise 5-10 times from the current level.Debt-ridden Vodafone Idea has proposed that the minimum price of data should be fixed at Rs 35 per GB, Bharti Airtel has proposed minimum price of Rs 30 per GB for low data users and Reliance Jio wants it to be hiked gradually to Rs 20 per GB. PRS BAL

Telcos to opt for EMI moratorium; tariff to remain stable: COAI

Telecom operator <keyword id="6354287" type="General" weightage="20" keywordseo="bharti-airtel" source="Orion">Bharti Airtel</keyword>'s consolidated net profit fell 2.8 per cent during Q3FY22 to Rs 830 crore on a year-on-year basis. In the same quarter of the previous fiscal, the consolidated net profit of the company stood at Rs 854 crore. On the other hand, the total revenues during Q3FY22 grew 12.6 per cent to Rs 29,867 crore, as against Rs 26,518 crore in the same quarter last fiscal. Besides, EBITDA grew 22.4 per cent to Rs 14,905 crore, against Rs 12,178 crore reported in the same quarter last fiscal. "We have delivered another quarter of sustained performance across all our business segments... The recent tariff revision for mobile services has gone down well and we are exiting the quarter with an industry leading ARPU of Rs 163," said Gopal Vittal, MD and CEO, India and South Asia in a statement. The full impact of the revised mobile tariffs, however, will be visible in the fourth quarter, he said. "Our Enterprise, Homes and Africa business continue to deliver strongly, with steady increase in contribution to the overall mix of the portfolio. Our balance sheet is robust and we are now generating healthy free cash flows. This has enabled us to recently prepay some of our spectrum liabilities to the government thereby reducing the interest burden." Furthermore, Google's recent investment in the company is a strong validation of <keyword id="15491" type="General" weightage="100" keywordseo="airtel" source="Orion">Airtel</keyword>'s role in being a leading pioneer of India's digital revolution, the statement said. "Our emerging digital services portfolio across Airtel IQ, AdTech, digital market place, Nxtra and digital banking positions us well to build an Airtel of the future," he added. Headquartered in India, Airtel is a global communications solutions provider with over 480 million customers in 17 countries across South Asia and Africa. SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/jio-laptop-inches-closer-to-launch-could-be-powered-by-windows-10-and-an-arm-processor/articleshow/89400900.cms">Jio laptop inches closer to launch, could be powered by Windows 10 and an ARM processor</a> <a href="https://www.businessinsider.in/business/telecom/news/30-day-monthly-recharge-plans-for-prepaid-users-now-as-per-trai/articleshow/89173110.cms">Prepaid mobile users may get to do one less recharge a year, but savings are not assured</a>

You Searched For "mobile tariffs" and got 13 results

Your mobile phone bills will rise by 15% this year, because the Govt is doling out airwaves to mobile phone operators

BI India Bureau

Telcos attempt an even deal; threaten to raise tariffs if call drop fine imposed

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Jio's new ₹599 ‘all-in-one’ subscriptions offer the biggest bang for your buck

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Fact check: India's mobile tariffs aren't the cheapest in the world anymore

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Hike in prepaid plan prices to raise telecom firms' revenues: Analysts

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India mobile internet rates remain lowest in world: Prasad

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Telcos propose Trai to regulate data tariff by fixing minimum price

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Trai's consultation on floor price, decision on IUC extension spells relief for Airtel, Voda

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Bharti Airtel To Look At Raising Headline Call Rates

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Tariff hike good for customers, to boost govt revenue, create jobs: COAI

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Floor rates needed for mobile data services, current scenario justifies TRAI's intervention: COAI

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Telcos to opt for EMI moratorium; tariff to remain stable: COAI

PTI

Bharti Airtel reports 12.6% increase in revenue, ARPU up by 6.5%

IANS

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