Broadband Tariff Hikes Might Get Implemented Soon

Almost every internet service provider (ISP) is offering customers a free subscription to multiple over-the-top (OTT) platforms with its high-end plans. This is adding to the cost pressure for the ISPs. Broadband plans getting expensive would mean that customers will have to pay up to Rs 150-Rs 200 more for low-end plans offering 100 Mbps and 200 Mbps speeds.

HIGHLIGHTS

  • Just like telecom internet services, the average revenue per user (ARPU) needs to go up for broadband as well.
  • Almost every internet service provider (ISP) is offering customers a free subscription to multiple over-the-top (OTT) platforms with its high-end plans.
  • A 20% tariff hike on that would irk a lot of consumers across the nation.

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Broadband

Broadband internet is arguably the best source of connectivity if you are working from home as it is reliable and offers high speeds all the time. After the prepaid tariff hikes that the telecom operators have recently implemented, Indians might see the price of broadband plans going up as well.

According to a PTI report, Tapabrata Mukherjee, co-founder, Meghbala Broadband, said just like telecom internet services, the average revenue per user (ARPU) needs to go up for broadband as well. As per Mukherjee, broadband plans also need to see a tariff hike of up to 20% because then only the current services will become viable.

Offering Free OTT Services is a Cost Pressure for Broadband Service Providers

Almost every internet service provider (ISP) is offering customers a free subscription to multiple over-the-top (OTT) platforms with its high-end plans. According to Mukherjee, this is adding to the cost pressure for the ISPs.

But tariff hike is not something that small ISPs can lead with. The national and major ISPs such as Airtel, Jio, and Bharat Sanchar Nigam Limited (BSNL) will have to lead the way for this to happen.

But the thing is, the leading ISPs have never indicated that they are being paid less. This has only come from Mukherjee as of now. The telecom operators have only said that the mobile tariffs are too low.

Broadband plans getting expensive would mean that customers will have to pay up to Rs 150-Rs 200 more for low-end plans offering 100 Mbps and 200 Mbps speeds. This is something that would require a lot of planning and careful assessment as the broadband tariffs in India aren’t that cheap either. There are customers who are paying more than Rs 1,000 each month to get a decent fiber broadband experience. Thus a 20% tariff hike on that would irk a lot of consumers across the nation.

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Tanay is someone with whom you can chill and talk about technology and life. A fitness enthusiast and cricketer, he loves to read and write.

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