In what comes to us as an end to cheap or free data, Jio, joining Bharti Airtel and Vodafone, has said it will increase telecom service charges in the coming few weeks. The telecoms are heading towards tariff hike after operators, including Vodafone and Airtel, reported massive losses in the last quarter.
Notably, Vodafone and Airtel have reported a combined loss of Rs. 74,000 in the quarter ending in September.
Jio on Tuesday had said that the telecom will increase tariffs, among other measures, in the next few weeks. Jio added that it will ensure tariffs are “appropriate” and “does not adversely impact data consumption or growth in digital adoption and sustains investments”.
Once Jio hikes the tariffs, there will be parity among the operators, with each of them on the same page when it comes to levying tariffs.
Reportedly, Bharti Airtel and Vodafone Idea plan to increase the tariff starting from December 1, 2019.
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“The telecom sector is highly capital intensive with fast-changing technology cycles that require continuing investments. It is, therefore, extremely important that the industry remains viable to support the vision of Digital India,” Bharti Airtel said in a statement.
“Accordingly, Airtel will appropriately increase price offerings in the month beginning December,” it added.
Added Woes
Notably, telecom woes heightened after the Supreme court ordered operators to pay revenue share dues within three months as directed by the Supreme Court.
Moreover, the court, ruling in favour of the government, has upheld the definition of AGR as stated by the Department of Telecommunications.
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While the operators wanted AGR to be calculated after taking only the revenues generated from telecom services into account, the Supreme court upheld that revenues from non-telecom services shall also be considered when calculating AGR.
