In order to sustain the loss-making businesses and on the suggestion of the department of telecommunications (DoT) telecom operators are expected to hike tariffs by nearly 20%.
Crux of the Matter
Major telecom operators like Bharti Airtel, Vodafone Idea and Reliance Jio have announced an increase in tariff prices from December.
After the entry of Jio in the telecom sector followed by the bitter tariff wars, this would be the first time that telcos might go for the price hike.
The telecom segment has been facing heavy losses and debts earlier due to Jio and now due to supreme court ruling on adjusted gross revenue (AGR).
Government of India also has recently announced a 42,000 crore relief package for the telecom companies.
DoT is aiming to increase competition and give consumers more choice by asking all telecom carriers to share in-building infrastructure in all government and public buildings.
Curiopedia
The Indian telecommunication network is the second-largest in the world by the number of telephone users (both fixed and mobile phone) with 1.183 billion subscribers as on 31 May 2019. It has one of the lowest call-tariffs in the world enabled by mega telecom operators and hyper-competition among them. Since the past 4 years, especially after the launch of Reliance Jio; Indian telecom companies are looking for mergers and acquisitions to sustain and stay in the competition. In October 2017, Airtel & Tata Teleservices merged followed by Vodafone and Idea which were 2nd and 3rd largest telcos. Airtel also acquired Telenor and Tikona. Reliance Comm had also merged with Aircel but since they were unable to repay the loans the company filed for Bankruptcy. More Info
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