Vodafone Idea, Bharti Airtel and Jio Tariff Hike May Help Subscribers In the Long Run

The latest news in the industry is about the tariff hike that has been done in the industry for the telecom subscribers. Most of the subscribers of prepaid services are not liking the tariff hike because it essentially means the end of the era of free unlimited calling, which was a feature which a lot of telecom operators boasted about. However, with this new tariff hike, there are not only changes in the prices of the prepaid plans, but also the benefits which the subscribers were getting. On the surface, this seems like a move of desperation on the part of the telecom operators, and the subscribers have all the reason to be a little angry at the tariff hike given the quantum of 40% increase. But, diving a little deep down on the details of this tariff hike and ideating about what the impact could be in the long term, there are some points that the subscribers might be missing. It is quite possible that the tariff hike which seems like it’s taking a lot of money out of the subscribers’ pocket might actually turn out to be a good move for them and for the industry as well but in a slightly longer term.

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Financial Health of Industry

The first thing to note here is the poor condition of the industry, which has been one of the driving factors behind all the major moves by the telecom operators in the telecom sector. The tariff hike can be believed one of these too. Because of the immense pressure from the Supreme Court and the Department of Telecommunications (DoT), the telecom operators face dues worth of Rs 1.3 lakh crore and more combined from the AGR verdict. The new tariff hike will help these telcos to tackle these payments better, but then again, what do the subscribers gain in this?