In the face of financial pressure, private sector telecom major Airtel has increased international call rate tariffs by up to 10 % for some destinations for all customers and reduced certain benefits on add-on services for its pre-paid subscribers.
"Tariff rationalisation is a continuous process and a function of market dynamics. With the correction of tariffs for a few international destinations, we continue to remain competitive and deliver value to our customers," an Airtel spokesperson said.
Also, all the schemes which allowed its pre-paid customers to get flexibility on billing plans, reduce call rates during roaming, etc, will now have fewer benefits.
Airtel has reduced validity of such schemes by half to six months from one year.
The company also reduced the benefit offered under wireless Internet service on mobile phones - GPRS. It is now giving 1 GB data download limit for Rs 98 instead of 2 GB offered earlier.
Airtel has, however, reduced the regular data download price of its 2G and 3G network to 10 paise per 10 KB from 30 paise per KB offered earlier, a company official said.
For the quarter ended September 30, 2011, Airtel posted decline of 38.17 % in its net profit at Rs 1,027 as compared to Rs 1,661 crore reported in the same period a year ago. This was the seventh consecutive quarter in which the company registered a decline in profit.
Earlier in July, Airtel had announced up to 20 % increase in tariff for pre-paid users. Later, other telecom service providers also increased rates of their services.
Airtel had over 171 million mobile phone subscribers by end of August, 2011.