07 May, 2021

Telecom Turmoil: Is India Ready To Brace The Impact Of Rising Call, Data Charges

Saddled with huge losses and even higher debts, the telecom companies have no option but to shore up incomes and margins. Mobile data charges are one of the cheapest in India

Telecom Turmoil: Is India Ready To Brace The Impact Of Rising Call, Data Charges

The October-December quarter is a festive period that offers big opportunities to both sellers and buyers. Companies seek to increase revenues and profits through higher volumes. Consumers look for hefty discounts and attractive deals. This wasn’t true, however, for the telecom sector this time. Saddled with huge dues due to a recent Supreme Court order, telecom players stare at a financial abyss that can cripple or bankrupt them. Mobile users can forget about the good old days when they were hooked to free or low-cost calls, text and data. The four major telecom firms—Airtel, Vodafone-Idea, Reliance Jio and the state-owned BSNL—will hike tariffs this December. They did it in 2018 too, but the increases this time will be higher.

Outlook learns that prices for voice and data may go up 10-25 per cent, though some reports suggest hikes as steep as 67 per cent for voice calls. In essence, it will unleash a transformation within the mobile segment. Companies will change their business models, while subscribers will have to change their usage patterns....

More from Jyotika Sood

Latest Magazine

May 10, 2021

other articles from the issue

articles from the previous issue

Other magazine section