Ever since the launch of Reliance Jio in the telecom sector, the other incumbents found it very difficult to keep the pace with the tariffs provided by the company. In the race of constant competition, many companies say Airtel, BSNL, Vodafone, and Idea have slashed their tariffs and introduced the new 4G data plans even.
But now as the Reliance has decided to raise effective prices of most 4G tariff plans by 15-20% from October 19, the companies are also considering to increase the 4G tariff rates. Now plans of Jio in which for 1GB 4G data at high speed per day, one has to pay 15 percent more for the 84-day plan at Rs 459 from October 19. Furthermore, for the Rs 399 plan, the validity has been reduced to 70 days from 84 days.
“The price increases are positive for the sector and incumbents, who had generally followed Jio’s prices in the past six months and will now likely be able to raise prices as well,” Swiss brokerage UBS said. The company has done this in order “to increase the value proposition of low-end plans since higher prices could drive churn in the more price-sensitive segments.”
This could prove to be a good news for the other telco service providers as they can now increase their tariff without any fear from the disruptive offers provided by Jio.
Mukesh Ambani-owned Reliance Jio was launched last year and since then the company has managed to lure many customers with its super-saver tariff plans for 4G data, so it will be quite interesting to see how the company will be able to continue with its customer-base with these increased tariff plans.