Tariff Hikes Imminent with Cheapest Data Plan Set to Cost Over Rs 3000

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Rohit Paranjpe, CEO of SugarBox told TelecomTalk that “consumers are facing imminent tariff hikes” for both voice and data services with the hikes set to be in the range of 10%. Paranjpe highlighted the “cheapest data” rate of Rs 3.5 per GB is currently offered in a plan priced at Rs 599 with an 84 days validity. However, Paranjpe said that the same data plan will be priced in the range of Rs 3360 to Rs 5580, “if the regulator accepts” proposed floor data prices. The telecom operators in India including Airtel, Vodafone Idea and Reliance Jio proposed floor data prices in the range of Rs 20 to Rs 35 per GB.

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Tariff Hikes to Result in User Erosion and Consumption Erosion

In late May, it emerged that the discussion on floor prices would happen after the COVID-19 lockdown was lifted. However, ICICI Securities earlier in the day said in a research note that it is expecting progress on the floor prices of cellular data. Paranjpe said that the tariff hikes might result in user erosion and consumption erosion.

“India today has cheapest data but speed on [the] internet is one of the slowest,” Paranjpe told TelecomTalk. “In such [a] situation, [tariff] increase will affect not only usage but also have a negative influence in the Digital India Drive. In this scenario solution like SugarBox is exactly what customers would want to latch on to.”

SugarBox is said to be the “only network in the world” that enables users to access their “favourite apps seamlessly” without the need for a user to connect to the user’s mobile data. The company sets up a “hyperlocal” content delivery network (CDN) and discovery network at “key places of interest (POIs) that are frequented by consumers.” It was said that SugarBox serves as a “complementary” solution rather than “competing” with the existing stakeholders.