Indian Telecom Industry Regaining Tariff Power

According to information, the new Rcom tariff will cost subscribers two paise per second for mobile-to-mobile calling. The Base amount, or the title contract price, relates to clients not protected under any unique plan provided by their telecommunications owner.

Reliance decided to hike base prices for both GSM and CDMA pre-paid mobile-to-mobile calling by 33 % to two paise per second from 1.5 paise per second valid for clients not protected under any unique plan provided by Rcom.

Recently, the organization improved contact prices up to 30 % for both GSM and CDMA pre-paid clients to improve the earnings.
The increase in mobile-to-mobile contact prices among incumbent players, except Aircel, has gone up by up to 100 % in last two years. The phase wise increase in base prices kicked-in post termination of 122 second generation (2G) telecommunications permits by the Superior Court on Feb 2, 2012.

While Airtel started with higher base price of two paisa per second this year whereas other leading players Idea, MTS, and Tata Teleservices, grabbed an opportunity to increase base prices to two paise per second.
Aircel is asking for a highest possible of 1.75 paise per second from its mobile users that are not protected under any unique or discount plan of the organization.

The move clearly suggest that incumbent mobile service providers are able to find good footing for pricing power post disastrous 2 years of tariff war in Telecom history . The incumbent decision in the past few quarters to clean up their non-active subscriber base, consolidation of vendors and product offering enabled them to clearly plan a strategy on the tariff front to achieve year over year growth. It is believed that Indian Telecom sector is on the verge of another upwards trend

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