Reliance Jio to hike tariffs: Is this the end of honeymoon period for consumers?

Reliance Jio to hike tariffs: Is this the end of honeymoon period for consumers?

Mukesh Ambani-led Reliance Jio aims to increase revenues, augment average revenue per user (ARPU) and fund investments in its 4G and 5G infrastructure

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Mukesh Ambani-led Reliance Jio to hike tariffs in coming weeksMukesh Ambani-led Reliance Jio to hike tariffs in coming weeks
BusinessToday.In
  • Nov 20, 2019,
  • Updated Nov 20, 2019 2:55 PM IST

Reliance Jio announced on Tuesday that it will hike its tariffs in a few weeks. While the company did not state the quantum of tariff hikes, it has followed the footsteps of rivals Vodafone Idea and Airtel in announcing an increase in their prices. The telecom operator had also announced additional IUC charges last month. This could spell the end of the honeymoon period for its customers as the Mukesh Ambani-led telecom operator aims to increase revenues, augment average revenue per user (ARPU) and fund investments in its 4G and 5G infrastructure.

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Reliance Jio stated in a regulatory filing on Tuesday: "As per media reports, we understand that TRAI is likely to initiate a consultation process for revision of telecom tariffs. Like other operators, we will also work with the government and comply with the regulatory regime to strengthen the industry to benefit Indian consumers and take measures including appropriate increase in tariffs in next few weeks in a manner that does not adversely impact data consumption or growth in digital adoption and sustains investments."

Last month, Reliance Jio announced that it would levy an additional charge of 6 paise per minute as IUC charges as, it claimed, it paid Rs 13,500 crore to other operators as IUC charges in three years. IUC charges are calling-party-pays tariffs that mean that the network from which the call originates would have to pay IUC charges to the called network. In the wake of this, Reliance Jio decided to pass on the IUC burden to the customers.

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Reliance Jio announced on Tuesday that it will hike its tariffs in a few weeks. While the company did not state the quantum of tariff hikes, it has followed the footsteps of rivals Vodafone Idea and Airtel in announcing an increase in their prices. The telecom operator had also announced additional IUC charges last month. This could spell the end of the honeymoon period for its customers as the Mukesh Ambani-led telecom operator aims to increase revenues, augment average revenue per user (ARPU) and fund investments in its 4G and 5G infrastructure.

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Reliance Jio stated in a regulatory filing on Tuesday: "As per media reports, we understand that TRAI is likely to initiate a consultation process for revision of telecom tariffs. Like other operators, we will also work with the government and comply with the regulatory regime to strengthen the industry to benefit Indian consumers and take measures including appropriate increase in tariffs in next few weeks in a manner that does not adversely impact data consumption or growth in digital adoption and sustains investments."

Last month, Reliance Jio announced that it would levy an additional charge of 6 paise per minute as IUC charges as, it claimed, it paid Rs 13,500 crore to other operators as IUC charges in three years. IUC charges are calling-party-pays tariffs that mean that the network from which the call originates would have to pay IUC charges to the called network. In the wake of this, Reliance Jio decided to pass on the IUC burden to the customers.

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