December 2, 2021 04:21 PM
Over the past one week, Bharti Airtel, Vodafone Ideas and Reliance Jio announced tariff hikes of up to 25 percent, which analysts believe is a positive move for the sector and could boost their operating profits by at least 40 percent.
Reliance Jio has urged the telecom regulator to look into Vodafone Ideas new tariff plans, alleging that it could become a barrier in mobile number portability.
According to RJio, Vodafone Idea’s move to raise the tariff for its SMS service to RS 179 from RS 149 could discourage subscribers, especially entry-level users, who are looking to port to other telecom service providers, the report said.
Jio claimed that the new tariff would mean that a customer, looking to switch telecom service provider, will have to subscribe to an expensive plan in order to send an SMS, which is required to process a porting request.
The move comes just a few days after all private telecom operators in the country hiked their tariff plans amid rising competition and stress in the sector. The Reliance Industries-owned Jio has asked the telecom regulator to consider making such SMS services free or suggest other means for customers to switch networks, a report said. TRAI is examining the issue, and will ensure that consumers have the flexibility to choose. the report said.
In September, over 10 million subscribers submitted requests across networks in India to switch to another network, and customer acquisition is crucial for all the three private telecom players.
Gross subscriber base for the industry fell steeply by 20.7 million to 1,166 million in September on account of a 19 million decline in RJio’s gross subscriber base due to a cleanup of inactive subscribers. However, active subscribers grew by 3.9 million to 996 million on month.
Even as gross subscribers for RJio fell, it maintained its lead in active subscriber additions at 4.7 million to 355 million, increasing its market share by 30 bps to 35.7%, Motilal Oswal said in a report.
Over the past one week,
Bharti Airtel, Vodafone Idea and Reliance Jio announced tariff hikes of up to 25 percent, which analysts believe is a positive move for the sector and could boost their operating profits by at least 40 percent. This coupled with the moratorium on government dues will help them invest more aggressively into 5G technology, said a report.