Active Stocks
Thu Mar 28 2024 15:29:53
  1. Tata Steel share price
  2. 156.45 2.36%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,446.50 0.40%
  1. ITC share price
  2. 428.30 0.07%
  1. Power Grid Corporation Of India share price
  2. 277.15 2.25%
Business News/ Companies / RCom raises tariffs by up to 20% for prepaid customers
BackBack

RCom raises tariffs by up to 20% for prepaid customers

Headline tariffs will increase from 1.5 paise to 1.6 paise per second, while tariffs on discounted and promotional plans will increase by up to 20%

Shares of RCom fell 2.63% to `129.70 apiece on BSE, while the benchmark Sensex fell 0.92% to 22,277.23 points. Photo: Pradeep Gaur/MintPremium
Shares of RCom fell 2.63% to `129.70 apiece on BSE, while the benchmark Sensex fell 0.92% to 22,277.23 points. Photo: Pradeep Gaur/Mint

Mumbai: Reliance Communications Ltd (RCom) has raised tariffs by up to 20% for all its prepaid customers from 25 April, the company said on Wednesday.

Headline tariffs will increase from 1.5 paise to 1.6 paise per second, while tariffs on discounted and promotional plans will increase by up to 20%, RCom said in a statement.

“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 rising cost of input materials," Gurdeep Singh, chief executive officer, consumer business, RCom, said.

With this, the company expects its revenues per minute (RPMs)—a key metric for telecom companies—to improve in the next few quarters.

A telecom sector analyst said while RCom will benefit from the fare increase, other operators are unlikely to raise prices.

“If a Bharti (Airtel) or Vodafone had done it others would have followed. In RCom’s case, the free minutes in its network were more than the others and tariffs low compared to other telecos," the analyst said, requesting anonymity.

Shares of RCom fell 2.63% to 129.70 apiece on BSE, while the benchmark Sensex fell 0.92% to 22,277.23 points.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 16 Apr 2014, 01:10 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie