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<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

<ul><li>Within 24 hours of Airtel and Vodafone increasing tariffs, Reliance Jio too said it will also look at the same. </li><li>Will take measures including appropriate increase in tariffs in the next few weeks, Jio said. </li><li>Vodafone Idea stock gained by 20% in today’s early trade. </li></ul>In a <a href="https://www.businessinsider.in/business/corporates/news/mukesh-ambanis-reliance-jio-could-increase-tariffs/articleshow/72121399.cms">much-expected turn of events</a>, <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>’s Reliance Jio has toed the line that was breached by his arch rivals –Vodafone Idea and Bharti Airtel. Within 24 hours of the latter announcing that they are increasing tariffs, Reliance Jio said it will also look at the same. “Like other operators, we will also work with the Government and comply with the regulatory regime to strengthen the industry to benefit Indian consumers and take measures including appropriate increase in tariffs in the next few weeks in a manner that does not adversely impact data consumption or growth in digital adoption and sustains investments,” said Jio in a press release<a href="https://www.bseindia.com/xml-data/corpfiling/AttachLive/572692a0-b213-4953-9e63-e08d1a7d3b81.pdf"> yesterday</a>. The move has led a rally in Reliance Industries’ stock which went up by 4% in early trade, but the biggest gainer as the second telecom tariff war is cooling down is still Vodafone Idea. The stock has been taking a beating ever since Supreme Court order <a href="https://www.businessinsider.in/stock-market/news/reliance-industries-jio-stock-prices-shoots-up-after-supreme-court-verdict/articleshow/71737746.cms">supported Department of Telecommunications </a>in the case on defining aggregate gross revenues (AGR). After falling to as<a href="https://www.businessinsider.in/stock-market/markets/news/vodafone-idea-share-price-falls-sharply-after-record-loss-in-second-quarter/articleshow/72065283.cms"> low as ₹3,</a> it has gained as much as 21% in today’s trade. This good news however has another story, and not a pleasant one for the scores of telecom consumers. On an average, Indians have been enjoying 1 GB data at ₹18 or $ 0.26! In comparison, Americans pay as much as $6 per GB. Jio however has been heralding this change as its tariffs are 30% cheaper than that of Vodafone and Airtel. SEE ALSO <a href="https://www.businessinsider.in/business/corporates/news/mukesh-ambanis-reliance-jio-could-increase-tariffs/articleshow/72121399.cms">Reliance Jio gets a golden opportunity to hike tariffs and still stay ahead of rivals</a> <a href="https://www.businessinsider.in/reliance-jio-airtel-and-vodafone-idea-may-raise-tariff-soon/articleshow/71757089.cms">Whether you use Jio, Airtel, Vodafone-Idea, get ready to pay more for mobile services— sooner than later</a>

Mukesh Ambani joins his peers to end the cheap data party for Indians

<ul><li>Bharti Airtel and Vodafone Idea hiked their tariffs which will take effect from December.</li><li>This time around, their arch rival Reliance Jio might follow suit.</li><li>A few weeks back, Jio faced a customer backlash for increasing tariffs by<a href="https://www.businessinsider.in/business/news/mukesh-ambanis-jio-faces-backlash-for-tariff-increase/articleshow/71573757.cms"> a mere six paise.</a></li></ul>Like in mythical stories, a great adversary leads to an unexpected windfall. Cornered into paying up as much as<a href="https://www.businessinsider.in/business/news/reliance-jio-airtel-and-vodafone-idea-may-raise-tariff-soon/articleshow/71757089.cms"> ₹92,000 crore in past</a> dues to telecom department --- Bharti Airtel and Vodafone Idea did something they wouldn’t have otherwise dared to --- increase tariffs starting December. This time around, their arch rival Reliance Jio might follow suit. Just a few weeks back, they faced a backlash for increasing tariffs by<a href="https://www.businessinsider.in/business/news/mukesh-ambanis-jio-faces-backlash-for-tariff-increase/articleshow/71573757.cms"> a mere six paise after government</a> made them pay Interconnect Usage Charge (IUC) to other players. But this time, it might be an opportunity go with their rivals. State-owned BSNL and MTNL are not real competition and are now consumed with staying afloat from heavy debt. This time around, Jio can ride the tariff hike wave without bellyaching<a href="https://m.economictimes.com/industry/telecom/telecom-news/jio-faces-customer-rage-on-twitter-over-move-to-charge-voice-calls/articleshow/71532717.cms"> from consumers</a> and trolling by rivals, unlike the last time. More importantly, Jio’s tariffs are lower than that of Vodafone and Idea by at least 30%, which means even if they increase tariffs, they will still be the cheapest. They can maintain their competitive advantage—without ruffling many feathers. Jio might not look and sound as desperate as their competitors due to a recent<a href="https://www.businessinsider.in/mukesh-ambanis-reliance-jio-raises-25215-crore-for-its-invits-from-canadian-fund-brookfield/articleshow/70295640.cms"> equity infusion</a> from a Canadian investor – but they too need tariff hikes. “Jio would have to increase tariffs as there is no way that they can carry on at the rate that they are going. It is just a matter of time,” Alok Shende, telecom expert and managing director at Ascentius Insights told Business Insider India, before the SC order. However, Jio might have another hurdle as it has set new subscriber addition targets of attaining 500 million subscribers, as announced. And it still has a few million more to add as its subscriber base is currently at 348 million. “RJIO’s pricing hinges on its aspiration of 500 million subscriber base and parent Reliance Industries’ aspiration of paring net debt to zero. Hence, considering higher subscriber acquisition target, we argue the company may delay tariff hike by a few quarters. That said, given the company’s ballooning debt and its commitment to reduce debt, tariff hikes look certain,” said a CLSA report in October. While it might end the ultra low tariff party for subscribers, if Jio too joins in the bandwagon that Airtel and Vodafone started--- it will end the second telecom tariff war. That is the good news that telecom investors have been waiting for years now. SEE ALSO <a href="https://www.businessinsider.in/business/telecom/news/airtel-and-vodafone-idea-plans-to-hike-tariffs-after-posting-record-losses/articleshow/72119603.cms">Airtel and Vodafone Idea hike tariffs after posting record losses</a> <a href="https://www.businessinsider.in/business/news/reliance-jio-airtel-and-vodafone-idea-may-raise-tariff-soon/articleshow/71757089.cms">Whether you use Jio, Airtel, Vodafone-Idea, get ready to pay more for mobile services— sooner than later</a> <a href="https://www.businessinsider.in/business/news/mukesh-ambanis-jio-faces-backlash-for-tariff-increase/articleshow/71573757.cms">Reliance Jio is paying the price for being the ‘second SIM’ of choice</a>

Reliance Jio gets a golden opportunity to hike tariffs and still stay ahead of rivals

New Delhi, Nov 19 () The telecom regulator will wait for operators to report their new tariffs to the authority before taking a view on whether the revised pricing is within the regulatory framework, according to a Trai source.
Confronted with intense competition and unprecedented statutory dues, Bharti Airtel and Vodafone Idea on Monday announced a hike in mobile phone call and data charges from December saying the increase was warranted for viability of their business. The two, however, did not quantify the increase in rates but said that the hike will be effective beginning next month.
A senior Trai official told that the regulator will wait and watch to see the finer details of the announcement. "Let them report the tariffs, and we will see. Also, the tariffs are under forbearence," the official said.
Another official said that as things stand now there is no move to initiate any consultation on floor price.
On Monday evening, Vodafone Idea, in a statement, announced plans to raise tariffs for the first time in 3 years only to be followed by a similarly-worded statement minutes later from Airtel.
Vodafone Idea and Bharti Airtel, the two large telecom operators, last week had reported a combined loss of Rs 74,000 crore for the second quarter ended September 2019, mainly on account of statutory dues arising from the recent Supreme Court order on adjusted gross revenue (AGR).
The apex court has upheld the government's position on including revenue from non-telecommunication businesses in calculating the annual AGR of telecom companies, a share of which has to be paid as licence and spectrum fee to the exchequer. The ruling over statutory liabilities had prompted a rush for provisioning by telecom companies.
While Vodafone Idea posted a loss of Rs 50,921 crore -- the highest-ever quarterly loss by any corporate in India -- Airtel reported a loss of Rs 23,045 crore for the September quarter.
"To ensure that its customers continue to enjoy world class digital experiences, Vodafone Idea will suitably increase the prices of its tariffs effective December 1, 2019," Vodafone Idea had said in a statement on Monday.
Bharti Airtel statement had said the telecom sector is highly capital intensive with fast changing technology cycles that require continuing investments and therefore, extremely important that the industry remains viable to support the vision of Digital India.
"Accordingly, Airtel will appropriately increase price offerings in the month beginning December," Airtel had said. MBI BAL

Trai to wait for telcos to report revised pricing, details before taking view: Sources

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

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

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