RCom to hike pre-paid call rates

  • HT Correspondent, Hindustan Times, New Delhi
  • Updated: Apr 17, 2014 00:15 IST

Following a trend set off by Bharti Airtel and Vodafone, Anil Ambani-led Reliance Communications on Wednesday announced increase in tariffs by up to 20% for pre-paid customers across India from April 25.

Airtel and Vodafone had hikes rates earlier this month or "reworked the promotional tariff plans" according to the two companies.

The headline tariffs or the call rates will rise from 1.5 to 1.6 paise per second, while rates on discounted and promotional plans will increase by up to 20%.

"We continue to focus on growing profitable/paid minutes on our network and the current tariff hikes are part of our continued efforts to reduce free and discounted minutes, and offset the ever-rising costs of input materials," said Gurdeep Singh, CEO, consumer business, RCom.

A senior industry analyst said that RCom has been exploring the options of a rate hike of its voice plans to balance its lower data rates. "We expect revenue per minutes (RPMs) to improve over the next few quarters and this will impact our performance positively," he added.

RCom, Airtel and Vodafone India last year raised voice prices for the first time in three years as they continued to cut discounts earlier offered to lure customers in a highly-competitive market.

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