Reliance Communications has announced 20 percent hike in its mobile tariff rate. Moreover, the company has also cut down on its promotional and concessional offers by about 65 percent. The new tariff will be applicable to its existing as well as new customers with immediate effect. As a larger part of its customer base uses “Commitment Plans”, Reliance Communications is expected to hike these plans by 20 to 30 percent. With this move, Reliance aims at bringing in greater RPMs and profitability.
The company offers Commitment Plan 21, Commitment Plan 45, Commitment Plan 48 and Commitment Plan 46. The tariffs of its Commitment Plan 21 and Commitment Plan 45 have been hiked from 1 paise per second to 1.2 paisa per second. Its promotional and concessional Commitment Plan 48 will now offer only 160 local on-net minutes compared to 500 minutes that it offered earlier. Similarly, Commitment Plan 46, which earlier offered 200 minutes, now brings just 140 local on-net minutes to customers.
Take a look at the table below to view the changes in tariff:
“Our headline tariff increase from 1.2 to 1.5 paisa per second in October last year did not see any traffic elasticity and there has been no fall in customer demand or change in usage patterns, as we successfully migrated our entire base to the Headline Tariff. With the Indian telecom industry now heading for a phase of consolidation, with smaller operators shutting down or scaling down their operations and easing off hyper-competitive pressures, this will help pricing power move back to serious, long-term and pan-India scale operators and positively impact profitability. We have now corrected all Commitment Plans across the country and have increased tariffs by between 20 per cent and 30 per cent,” said Gurdeep Singh, Chief Executive Officer, Wireless, Reliance Communications.