Earlier this week Airtel and Vodafone Idea announced a 40% hike in the data tariffs followed by other tariff hike ranging from 15% to 40%. Starting 3rd December 2019, all the Vodafone and Airtel new plans will come into effect. Even after these blowing hikes in tariff the Telecom still stands firm on providing generous calling and data benefits to users.
Latest telecom news – Why the sudden tariff hike?
Taking a look at the past quarterly losses, these tariff hikes were quite necessary for Bharti Airtel and Vodafone Idea. According to the experts, these tariff hikes were made to improve average revenue per user. To boost their financial conditions the government backs up the telecom industry and assures that this hike will less hurt the consumers. To relax the financial stress and make up for the past losses According to the statistics provided by Business Standard “An average Indian now uses 10 GB data per month. Mobile data has become so affordable that an average Indian pays only 0.6 percent of his/her monthly income on it. But things have been tough for telecom companies: They ended up paying Rs 1 trillion over five years on spectrum charges and license fees.” This does not include the AGR debt and other Airtel and Vodafone Idea debts.
Savior Reliance Jio to do the same and launch new Jio plans
The explosion in data consumption was seen with the entry of Reliance Jio in the market in 2016. Reliance Jio enticed its users with free data and calling benefits. Reliance Jio was the savior when the rest of the telecoms where charging a fortune to its users. However, this time Reliance Jio too will be revising the tariff plans with a 40% hike. Airtel and Vodafone Idea announced their new plans on 1st December and came into effect from the 3rd of December. During the speculations of Reliance Jio doing the same as other Telecoms, Reliance Jio announced the recharge queuing of their 444 plan. The plan was now ‘444×4’, where the user can recharge with 444 for 4 times. The validity was of almost a year and the new plan gets activated after the expiry of previous ones. This was to avoid the upcoming tariff hikes. Yesterday Reliance Jio announced their new plans and assures that with the Jio new plan a Jio user can still save up to 25% in spite of the tariff hike.
When earlier in October Reliance Jio started charging IUC, Airtel and Vodafone stormed the Social media with allegations that it is overcharging its users. However, with recent revision in tariff plans, Airtel and Vodafone also started the IUC. But when Reliance Jio claimed that it still offers 300% benefits to its users, Airtel and Vodafone revised their plans again. Now the Airtel and Vodafone new plans have unlimited calls along with no IUC. This move by Airtel and Vodafone might have some effect on Reliance Jio. If you are using a lot of data then you can port into Jio. If you are someone who needs free calls and less data than go for Airtel and Vodafone Idea.