Consumers in India may have to prepare themselves to pay more for their telecommunications services in the coming months. According to a recent report, major telecom operators like Bharti Airtel, Reliance Jio, and Vodafone Idea (Vi) are planning to increase their tariffs once again by the end of this year. This move comes in the wake of their previous efforts to repair their tariffs and enhance their revenue visibility.
The Indian telecom market has seen a remarkable growth in recent years, with the number of mobile subscribers reaching a staggering 1.17 billion by the end of August 2021. This growth has been fueled by the increasing demand for data services and the rise of affordable smartphones. However, this rapid expansion has also put pressure on the telecom operators, who have been struggling to maintain profitable margins amidst intense competition.
In 2019, the telecom sector faced a major setback when the Supreme Court ordered the telecom companies to pay their outstanding adjusted gross revenue (AGR) dues, amounting to around Rs. 1.69 lakh crore. This added financial burden, coupled with the ongoing pandemic, has made it challenging for the operators to sustain their operations and invest in network expansion and improvement.
To tackle this issue, major telecom players resorted to periodic tariff hikes in 2019 and 2020, which helped them generate some much-needed revenue. However, with the recent launch of 5G services and the increasing demand for high-speed internet, it is imperative for the telecom companies to invest in network upgradation and expansion, which requires significant capital.
In this scenario, the proposed tariff hike by major operators is a positive step towards ensuring their financial stability and continued growth. The market analysts predict that this move will also help the companies to strengthen their revenue visibility and attract potential investors, which is crucial for their long-term sustainability.
Moreover, the tariff increase is expected to be a modest one, keeping in mind the prevailing economic challenges faced by the consumers due to the pandemic. The telecom companies are also likely to offer attractive bundled plans to sweeten the deal for their customers.
This proposed tariff hike will not only benefit the telecom companies but also have a positive impact on the overall economy. A more stable and profitable telecom sector will attract investments and stimulate job creation, boosting the economy.
Furthermore, the increased revenue generated by the telecom companies will enable them to invest in technological advancements and improve the overall quality of their services. This will ultimately benefit the consumers, who will have access to better network coverage, faster internet speed, and improved customer service.
The proposed tariff hike is a much-needed step towards ensuring the sustainability of the Indian telecom sector, which is a crucial pillar of the country’s digital economy. It will enable the operators to invest in disruptive technologies like 5G, which has the potential to revolutionize the way we communicate and access information.
In conclusion, the proposed periodic tariff hike by major telecom players in India is a positive move that will benefit both the companies and the consumers in the long run. It will not only strengthen the financial health of the operators but also pave the way for technological advancements, providing better services to the consumers. Let us embrace this change and look forward to a more connected and digitally advanced India.
