India’s two largest telecom operators, VI and Airtel, have announced that they will be hiking their tariffs from December 1, 2019. The hikes will range from 10% to 45%, and will affect both prepaid and postpaid plans.
The move comes as a result of the financial difficulties that both companies are facing. Vodafone-Idea has been particularly hard hit by the entry of Reliance Jio in 2016, which has led to a sharp decline in its market share. Airtel has also been struggling, and the two companies have combined losses of over $10 billion in the past two years.
The tariff hikes are seen as a way for the companies to improve their financial performance. They will also help to reduce the losses that they are making on voice calls, which are now effectively free due to the competition from Jio.
The hikes are likely to be unpopular with consumers, who are already facing rising costs of living. However, the companies argue that they are necessary to ensure that they can continue to provide high-quality services.
Impact of the Tariff Hikes
The tariff hikes are likely to have a significant impact on consumers. They will mean that people will have to pay more for their mobile phone services, which could put a strain on their budgets. The hikes are also likely to lead to a decline in the number of people who use their phones for voice calls, as people switch to using other forms of communication, such as WhatsApp and Facebook Messenger.
The tariff hikes could also have an impact on the Indian economy. They could lead to a decline in consumer spending, as people have less money to spend on other things. This could in turn have a negative impact on economic growth.
What Can Consumers Do?
There are a few things that consumers can do to mitigate the impact of the tariff hikes. They can try to find a plan that offers the best value for money. They can also try to reduce their reliance on their phones for voice calls, and instead use other forms of communication.
Consumers can also complain to the telecom companies about the tariff hikes. The Telecom Regulatory Authority of India (TRAI) has set up a helpline number (198) for consumers to register their complaints.
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The Future of Telecom in India
The tariff hikes are a sign of the challenges that the Indian telecom industry is facing. The industry is highly competitive, and the entry of Reliance Jio has led to a sharp decline in prices. This has made it difficult for the companies to make a profit, and has forced them to raise their tariffs.
It is unclear what the future holds for the Indian telecom industry. However, it is likely that the industry will continue to be competitive, and that the companies will continue to look for ways to improve their financial performance.