HomeNewsRCom not looking at tariff hike

RCom not looking at tariff hike

Amidst rumours of tariff hike from all major mobile operators after Airtel hiked call rates by 20 per cent, Reliance Communication has has no plans as of now to increase rates in near future.

Contrary to the perception that telecom companies across the country are set to hike tariffs in the face of Airtel increasing its call rates, Reliance Communication has no such plans as of now.

“As of now Reliance Communication has no plans to hike their tariff for pre paid and post paid connections,” said sources familiar with developments in Reliance Communication to The Mobile Indian. However, the teleco may hike the rates after a month or two, given the low tariff rates it is offering now.

Airtel on Friday increased its call and rates by as much as 20 per cent and it was said that other operators will follow suit. This resulted in share markets responding positively, seeing increase in operator earnings.

Reliance Communication (RCom) is the second largest operator in the country and offers services using both GSM and CDMA technology. And it already offers one of the cheapest call rates in the industry with even free calls within the network. RCom has more than 100 million subscribers in the country.

However, other operator might still go ahead with a tariff hike given the fact that Airtel and Tata Docomo has already done so, and profit margins for operators are at an all time low, with intense competition from the new operators as far as tariff rates is concerned.

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