Is Post-Auction Tariff Hike Really Imminent ? We find it out

Spectrum auction 2014 has been ended and already the incumbent operators are feeding the media that telecom tariff hike is imminent, as they have to shell out huge money to retain their spectrums. If anyone checks their claim about high cost for getting their spectrum is actually a lie. These companies have gone for both 900 and 1800MHz spectrum in the latest auction, but actually licenses of only 900MHz band spectrum which they have in 3 metros is going to be expired by November 2014.

mobile-towerThey knew about license expiration timeline, and therefore they should arrange money for it. But whatever spectrum in 1800MHz band they acquired in February 2014, that will be used mostly for 4G/LTE roll out. They look into the future and most importantly it’s not voice, it’s data. And the tariff hike generally goes to vanilla services – voice, text and 2G data. So their view about tariff hike is not a perfect decision.

There is another reason that will prevent all operators to jump into next round of tariff hike. The reason is upcoming launch of Reliance Jio’s 4G data and now voice as well as plethora of services. It’s almost sure that Jio will follow it’s trend to disrupt the market with ultra cheap wireless mobile broadband. So the situation in the market is something which can not be controlled by incumbent players – Airtel, Vodafone and Idea Cellular.

If you had checked the trends behind the tariff hike earlier, it was something like that: revision in rate cutter pricing or the validity. But ultimately people did not stuck to their basic plans, and they started using rate cutters to keep the tariff high. What I feel these old players may hike the tariff to maximum 0.5paisa per seconds and no more than that. And people will use rate cutters to keep talking at low rate.

The newer operators like Idea in some circles, Aircel, Tata Docomo, Reliance Mobile, Uninor, Videocon and MTS should look into strategic change to be competitive in the market. Apart from true unlimited onnet calling packs, they must think about low cost (10p to 5p to 1p per minute) calling plans within their own networks in different time of the day.

So our readers, what do you think about tariff hike in near future? Drop comments!

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  • Akash Dey February 24, 2014 11:03 pm

    But my brothers, remember Reliance GSM is still offering STV28 Local calls at 1.2paise/2sec valid for 45
    days and
    STV52 Local calls at 1.2paise/2sec valid for 90
    days. In Kolkata Sim STV52 validity is of 180days. I just avoid Reliance GSM for their unethical practices of deducting balance and poor customer care support (though their twitter presence is pretty good in responding).

  • idea888 February 24, 2014 10:37 pm

    @suditra roy it is online griwence loading and montering system??? Right??

    • Sutripta Roy February 24, 2014 10:53 pm

      yap!

    • Sutripta Roy February 24, 2014 10:54 pm

      its “pgportal.gov.in”

  • idea888 February 24, 2014 6:31 pm

    @ss, saurabh, Darshan , eamail
    i just recharged my reliance gsm . i fear that my balance will deduct. i even regisreed witg DND. so if my balance deduct then where i will get my balance refund?? any email id ? prompt reply id give me guys.. relianceadda- email not give any reply.

    • Sutripta Roy February 24, 2014 8:55 pm

      Complain to PG-portal.It’s a Central Govt. website “pg-portal.com” . they will definitely solve your problem.I myself did for balance deduction in my Reliance sim. and after complining Reliance executive made a call to me and gave refund and make sure that there will be no balance deduction in next time.and after that,there is no balance deduction problem I faced till now.

  • Chandra Sekhar Mandal February 24, 2014 5:36 pm

    I recently ported an airtel sim to vodafone for Rs. 60 and got Rs. 60 talktime and also 1.2p/2sec call rate for 6 months and 50 MB data free.
    After 6 months, i’ll port another sim to vodafone.
    Vodafone is best for me at least here in WB.

    • Sutripta Roy February 24, 2014 8:50 pm

      Yah! Vodafone,Airtel and Idea all three players are giving 6 months power and benefits after porting in to their network.That’s why I’m ported to Vodafone then Airtel then again vodafone and then again Airtel and go on.This is the best plan in West Bengal… :-D :-)

      • Chandra Sekhar Mandal February 24, 2014 10:32 pm

        How much offer airtel gave to you…..plz let me know i want to port another vodafone sim to airtel for call rate offers.

        • Sutripta Roy February 24, 2014 10:50 pm

          1.2p./2sec for 6 months.same plan is offering vodafone and airtel and idea.Airtel offering full talktime on RC40.this is only for porting customers.

        • Akash Dey February 24, 2014 10:53 pm

          I have ported to Airtel from Aircel last month. I was charged Rs. 120/- and got Rs. 81/- main balance + 6months Power of 1.2p/2sec + 50 data valid for 15Days + Free MCA service :) WB circle.

  • shabir ahmad February 24, 2014 3:54 pm

    As Of Now !dea Cellular Is The Only Operator Which Is Providing Cheap Tarrif Rates Like 1paisa/sec All Network on RC13 For 30days also offers idea to idea unlimited pack RC94 validity 15 days without capping And gprs pack 1Gb 2G Data for 28 days On RC59

    • Swarnava Sarkar February 24, 2014 7:02 pm

      in which state u belongs to?

  • Esmail February 24, 2014 1:21 pm

    I use Reliance GSM, and reliance has only bid for 600KHz only in Mumbai, and their license will not come up for renewal for at least another 10 years, so no tariff hike is imminent, only thing is they won’t have LTE so I’ll wait for Jio to launch services in Mumbai in September check their offering tariffs and if it’s better I may port.

  • Yogesh February 24, 2014 1:18 pm

    Ha , me too read : Vodafone top official said : They ve huge burden of infrastructure n cost of service etc + this auction , so they want to hike 1p-3p / sec ,n ll reduce benefits of packs : data ,sms ,min , validity :-) Though total is 610 Bn , companies ve to pay some 170 Bn upfront till 3rd march , n rest in installement for next some 10 years. Companies ve won spectrum for next 20 years , already they r in telecom sectors for more than 12 or more years. N even Tata gsm not won any in this auction : raised rate to 1.4p/s , i sent M N P request n they themself reduce my call rate to 1.2p/2sec :-) . Also in market : Aircel n uninor r alternative options for cheap terrif : SABSE SASTA :-) . N as per reports in sep 2014 jio ll enter . So uninor , aircel , jio , n M N P r options to tackle hike from A V I :-)

    • prasad mayya February 24, 2014 5:37 pm

      i bought vodafone sim 2months back …. now i gotsome offers like
      1.16Rs 80MB 30days
      2. 8Rs v to v 10ps
      3. 8Rs voda to others 30ps
      4. 91Rs full talktime
      today i got another offer “100 Rs recharge 100Rs talktime,100MB2g data,100 sms(local or national) 30 days”

  • Idea888 February 24, 2014 12:59 pm

    @Darshan, ss, saurabh i personally Feel that those who using the Vodafone/idea/airtel Must port out(except if u enjoying cheap tariff) . Corporate or Young who have good money they are using these operators sim. peoples not to opt for these operators. but what if they stick to their for coverage, connectivity peoples are not doing this.. Every circle Atleast operator Like Uninor, Aircel should have there. Tata DoCoMo is good but, unfortunately not provide good coverage.

  • Pranajit Roy February 24, 2014 12:47 pm

    It is also to be kept in mind what the operators have paid for upfront spectrum licensing is meager to the amount of total cost that will be paid in EMI over the next 10 yrs.
    So no one will buy their whining and still there is tariff hike,simple porting request will do the rest. :)

  • Akash Dey February 24, 2014 12:46 pm

    In West Bengal Circle Aircel has already reduced the validity of Rate Cutter 13 (all local call @ 1.2/2sec) to 30days from 45days which was 90days last year.

    • Kaushik Roy February 24, 2014 1:05 pm

      Soon aircel will reduced their network from West bengal and stop their shit service

      • Akash Dey February 24, 2014 6:58 pm

        Hence already switched to Airtel via MNP :)

        • Sutripta Roy February 24, 2014 8:41 pm

          Public should make Vodafone and Airtel a incoming operator.It’s not for outgoing purpose.

      • Sutripta Roy February 24, 2014 8:38 pm

        From which source do you know that?

    • Sutripta Roy February 24, 2014 8:37 pm

      But still Aircel rate cutter 13 is cheapest in West Bengal…And the 2nd cheapest is Idea RC22. But post auction 2014 time,Idea reduces its tower straingth badly specially indoor connectivity.So,Aircel is providing cheapest local rate with a better tower straingth…If there is no Aircel in West Bengal,there will be huge blow for West Bengal.

      • Akash Dey February 24, 2014 11:09 pm

        But my brothers, remember Reliance GSM is still offering STV28 Local calls at 1.2paise/2sec valid for 45
        days and
        STV52 Local calls at 1.2paise/2sec valid for 90
        days. In Kolkata Sim STV52 validity is of 180days. I just avoid Reliance GSM for their unethical practices of deducting balance and poor customer care support (though their twitter presence is pretty good in responding).

  • kushal kaushik February 24, 2014 12:39 pm

    I think tariff hike should be like this.. all india calls on mobile 1p/sec and landline 1.5/sec including roaming with incoming free and all sms including roaming at 50p/sms with no boosters for any calls and sms. This is good for operator as well as consumers.

  • krish February 24, 2014 12:37 pm

    Thank god that uninor is there in a.p. no matter how the tariff hike. they just continue to offer cheap tariff. I think its we who are encouraging avoid. if we stop using their service and port out of them we can teach them a lesson.

    • Sutripta Roy February 24, 2014 8:29 pm

      Absolutely correct ! There are many youths who still use Vodafone and Airtel. Idea is cheaper than them in some circles.But we shouldn’t entertain these two operators.If anyone want to connect with the world always,then use Vodafone and Airtel only for incoming purpose.These companies are looting us.So why don’t we do the same thing with them???

  • idea888 February 24, 2014 12:16 pm

    I dont fear about hike in tariff, becuae i Just Give Sms for port and imagetelly i get from cc that- plse dont port out we will reduce your tariff for 3 /6 months. haha MNP great option.