Indian Telcos Review Call Rates; Shares Surge after Hike
By IBTimes Staff Reporter | January 23, 2013 8:30 PM EST
According to reports, Bharti Airtel's call rates have gone up from ₹1 per minute to ₹2 per minute. It has also cut down on free call minutes by 10-25 percent and increased prices of tariff vouchers by ₹5 to ₹15 for prepaid customers.
"We have been reiterating that increase in prices is inevitable, which is reflected from the fact that despite rising costs, tariffs have been falling over the past 12 quarters," Bharti Airtel said in a statement.
The Economic Times reported that the constant revision of call rates suggest the return of pricing power to the telecommunication sector. Earlier in January telecom companies like Airtel and Vodafone had announced a hike in 2G data services which they claimed is for the betterment of the industry.
"This nominal price revision is subject to rate elasticity, customer demand and supporting cost structures. Our recent revision...is an increase of only 2-3 paise per MB. It continues to be an excellent value proposition for our customers," an Airtel spokesperson had said, according to The Economic Times.
Other service providers like Vodafone and Idea Cellular are also planning a similar kind of move. Idea Cellular has withdrawn its promotional offers while Vodafone has made changes in various data plans.
The Telecom Regulatory Authority of India will take a call on the revision of call rates in the coming days, reported The Economic Times.
Meanwhile, Bharti Airtel's shares surged 4 percent on the National Stock Exchange after the announcement of increased voice call charges. Idea and Reliance Communications Ltd gained 3 percent and 4 percent, respectively, but dropped later in day.
To contact the editor, e-mail:
Most Popular Slideshows
- Jeremy Lin, Kobe Bryant Among The Top 5 Overpaid Players In The NBA (Part 1 - Western Conference)
- Reasons Why Michael Jordan Is Better Than LeBron James [PHOTOS And VIDEO]
- Dwyane Wade, Joe Johnson, Amare Stoudemire Among Worst Contracts In The NBA (Part 2 - Eastern Conference)
- Brawl-Marred Game in NFL Week 3: Philadelphia Eagles 37, Washington Redskins 34 [PHOTOS]
Join the Conversation
- Kate Middleton Pregnancy Update: Duchess Of Cambridge ‘Dissed’ By Camilla Parker-Bowles; Delivery Expected In April- Reports
- 'Green Alien Eggs' Spotted on Sydney's Dee Why Beach
- Drag Queens Fume That Facebook Is Banning Aliases And Threaten to Drop Out Of It
- British Teenager Wants Her Leg Cut To be Able To Compete At Paralympics – Watch Video
- Pope Francis, Catholic Church Key To Climate Change Effort
- New Samsung Galaxy Note 4 and Galaxy S5 Android 5.0 L Killer Features, Encryption and More
- Nexus 6, 8 Release Date is Halloween 2014 as Android L Intro Set for October 16
- Moto G 2014 v Asus Zenfone 5 – Specification Comparison Shows Zenfone 5 Is A Good Alternative for Moto G
- Android 5.0 L Nexus 4, Nexus 5, Nexus 7 Release in October, Google Employees Offer Hint
- Nexus 8, Nexus 9 Release Date, Device Name And Price Conundrum: What To Expect?
- New Zealand Could Be Next ISIS Target After Australia Beheading Plot, Says Expert
- Microsoft Doubles OneDrive Space To 30GB Due To iOS 8 Update Issues