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Reliance Jio will be following Bharti Airtel and Vodafone-Idea, and increase mobile tariffs in the coming weeks.This news comes just a day after Vodafone confirmed that it will be “suitably” increasing its rates from December 1.
This wasn’t an unforeseen event, as the company reported an operating loss of over Rs 50,000 crores for the third quarter of 2019.
They justified this move by explaining how India has the cheapest data rates in the world, which was understandably putting financial pressure on the telecom sector.Vodafone-Idea also mentioned that active investments will continue in making its network future-fit, and offer new products and services to India’s growing consumer base.After the commercial rollout of Reliance Jio in late 2016, it offered loads of 4G data and free calls at never-before-seen rates.
This eventually led to a price war where the competitors were compelled to slash their tariffs to contend Jio.
However, three years in, the telcos are all facing the heat of functioning at slim margins. To keep up, Jio, too, will see a price hike in its plans, which will come into effect in December.
It will be Jio's first major price increase in all of its existence.
Exact tariffs and dates are yet to be announced.
Still, the statement mentions that measures including an “appropriate increase” in taxes will come into action in the coming weeks, “in a manner that does not adversely impact data consumption or growth in digital adoption and sustains investments.”This will be the second significant change coming from Reliance Jio in the last few weeks after they changed plans to no longer include free calls to other networks due to the changes in the IUC policy by TRAI.
Appeals have been made to reconsider this ruling, but without support from the other two players.
