Reliance Jio has also confirmed a tariff hike which might take place in the coming weeks; Vodafone Idea and Airtel already mentioned as December 1.
Since the launch of Reliance Jio, we have seen many disturbances among Indian Telecom as the company has started offering everything free. It leads to a tariff war, merger of telecom operator Vodafone and Idea to a single entity, restructure of company employees in Vodafone Idea and Bharti Airtel and many more. On a recent AGR verdict by the Supreme Court of India, it directs telecom operators to pay about Rs 92000 crores under different charges such as spectrum utilization, license expense, outstanding taxes, penalties and interest to the Department of Telecommunications (DOT). Now there have been official talks in COAI about raising tariff plans in the industry to improve financial support in telecom.
Vodafone Idea has taken the first move to announce an increase in tariff starting from December 1 and in its press release, the company has mentioned: “To ensure that its customers continue to enjoy world-class digital experiences, Vodafone Idea will suitably increase the prices of its tariffs effective 1 December 2019.”
Following, next in line Bharti Airtel has also released their statement to increase in tariff. Now Reliance Jio who has also joined the league in the latest release that it would also increase the tariff in the coming days.
The statement came a day after Bharti Airtel and Vodafone Idea Ltd announce a hike in call and data charges from next month.
Jio said telecom regulator TRAI is likely to initiate a consultation process for revision in telecom tariffs.
Reliance Jio in a statement said it would carry out an “appropriate” increase in tariffs which “does not adversely impact data consumption or growth in digital adoption and sustains investments. Like other operators, we will also work with the government and comply with the regulatory regime to strengthen the industry to benefit Indian consumers and take measures including an appropriate increase in tariffs in next few weeks in a manner that does not adversely impact data consumption or growth in digital adoption and sustains investments.
Reliance Jio has noted in its latest release that it has enabled India as the world’s largest data-market growing from 20 crore GB per month in 2016 to over 600 crore GB per month now.
It added, “Despite the staggering growth in data-consumption and 4G coverage across the country, there are still over 40 crore Indian consumers who have not benefitted from the advent of the latest technologies. We believe that the ambitious objectives of the ‘Digital India’ mission can be achieved only if India is made “2G-mukt” in the shortest time-frame possible. The Government and TRAI should mandate this through policy. This requires continued investment at an industry level. The whole industry needs to come up with the curve and raise standards to meet the aspirations of Indian citizens and fulfill the nation’s digital agenda.”
On October 24 Supreme Court of India, sustained the description of Adjusted Gross Revenue (AGR) initiated by the Department of Telecommunications (DoT), putting an end to a 14-year old legal battle between telecom operators and the Government. This says Telecom operators including Vodafone Idea, Bharti Airtel and Reliance Jio would must have to pay about Rs 92000 crores under different charges such as spectrum utilization, license expense, outstanding taxes, penalties and interest to the Department of Telecommunications (DOT).
Both India’s leading telecom companies Vodafone Idea and Bharti Airtel have recently posted historic losses on account of provisioning for adjusted gross revenue (AGR) pending dues that need to be paid to the Department of Telecommunications and now they have decided to hike tariff with effect from December 1. The telecom operator has shown their commitment towards the vision of Digital India by continuing to provide seamless mobile services to customers across India.