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Telecom companies set to go for bold tariff hikes; your mobile bills to bloat 30% this year!

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Wednesday, 1 February 2012

Telecom companies set to go for bold tariff hikes; your mobile bills to bloat 30% this year!

1 FEB, 2012, 08.04AM IST, JOJI THOMAS PHILIP,ET BUREAU

NEW DELHI: Mobile phone bills of consumers will rise 20-30% this year, top executives of all leading operators said, as the country's debt-ridden telcos raise call tariffs to revive revenue growth and cut losses in the fiercely competitive sector.

The move follows the 20% increase last July, the first hike after operators slashed tariffs in 2008 as they chased new customers, but ended up eroding profits. It comes at a time telcos are staring at penalties and fines running into thousands of crores of rupees for a range of alleged violations.

Vodafone quietly raised tariffs of postpaid users in January by about 20% in Delhi and plans to extend this to other regions, with rivals set to follow suit this month. Telcos say tariffs for prepaid customers, who form 96% of users, will be raised after March.

An executive close to Bharti Airtel said a 20-30% rise in the next 12 months was the "minimum requirement for the industry to keep its head above water".

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