This can be the next big disruption of India telecom industry.
After Airtel and Vodafone declared that they will also increase their mobile tariff for all users. And just like Airtel and Vodafone, Jio too hasn’t revealed as to how much increase has been planned.
And the exact dates of price increase has also been kept ambiguous.
What is going on here?
Jio: Yes, We will Also Increase Mobile Tariff
In a statement last night, Reliance Jio has informed everyone that time has come for them to increase mobile usage charges for all users.
They have used TRAI’s new guidelines on tariff ‘revision’, and have justified the increase in rates, by quoting ‘other telecom providers’, that is Vodafone and Airtel.
Jio said, “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 appropriate increase in tariffs in next few weeks,”
The exact date of the price increase, and the exact amount hasn’t been revealed.
Next few weeks, can mean that the new tariff will be applicable from December onwards.
Why Jio Is Increasing Tariff?
From the statement issued, it seems that this price increase has been done to provide better services for their users.
The tone and the angle of this statement is just like what Vodafone and Airtel stated, while increasing their mobile tariffs.
Jio said, “Jio will always keep the customer at the center of everything and ensure that the customer continues to benefit the most.”
Airtel, Vodafone Will Also Increase Tariff
Yesterday, within minutes of each other, both Airtel and Vodafone-IDea declared that they will hike their mobile rates, in order to provide better services for all users.
We had tried to find out the reasons, why this move is unusual: Firstly, both Vodafone and Airtel are incurring huge losses (Rs 70,000 crore collectively in the last quarter), and secondly, both didn’t mention the exact amount of price hike.
However, ever since they announced this price hike, their market cap has certainly increased: While Airtel’s share prices increased, helping them to gain Rs 237 billion in market cap, Vodafone gained Rs 69 billion, as their shares zoomed past their average price.
We will keep you updated, as more details come in.
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