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%
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.
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