Discussion Telcos logjam on mobile tariff hike

[Ashok Varma]

Telcos stuck in logjam for price hikes in pre-paid mobile services. Who will be the first to hike the mobile tariff? Vi or Airtel or Jio?
Telcos stuck in 'who-blinks-first' logjam on price hikes: Analysts - ET Telecom

 

[iDJ]

Jio should start. It will encourage customers to go to postpaid plus. While also getting rid of IUC charges permanently.

 

[Esmail]

First Vi will increase tariff by 40-45%, followed by Airtel which will increase by 30-35% and finally Jio will join by increasing 20-25%, all within a span of 3 weeks from the first one.

 

[Ashok Varma]

First Vi will increase tariff by 40-45%, followed by Airtel which will increase by 30-35% and finally Jio will join by increasing 20-25%, all within a span of 3 weeks from the first one

Will Vi data users will accept 40-45% hike as against Jio's 25%?

 

[kanagadeepan]

First Vi will increase tariff by 40-45%, followed by Airtel which will increase by 30-35% and finally Jio will join by increasing 20-25%, all within a span of 3 weeks from the first one.

One small correction bro..

First VoId will increase by 40-45%
Second Airtel will increase by 30-35%
Third VoId will immediately revise the tariff to Airtel level of 30-35%. Similarly like their dog (in Hutch ads) following its owner, VoId will follow Airtel.
Fourth Jio will increase by 20-25%

Same Happened in Dec-2019 tariff hike. VoId introduced tariff hike with IUC charges (6p offnet calls after few allowed mins), then Airtel hiked without IUC charges. IMMEDIATELY VoId removed IUC charges and claimed TRULY UNLIMITED. The main difference between Airtel and VoId is Airtel has confidence in itself and ready to face challenges.

TBH, I am eagerly waiting for both spectrum auction as well as tariff hike, so that the network xp will improve a lot.

 

[greylala91]

I want one of the telcos to withdraw from tariff war, lose certain subscribers and stabilize the network. Lets see who has the guts to do it

 

[Ashok Varma]

I want one of the telcos to withdraw from tariff war, lose certain subscribers and stabilize the network. Lets see who has the guts to do it

I think Jio wont withdraw from tariff war till 50 cr. figure reached. So, Airtel do the same. Can Vi has the guts to hike minimum recharge from 49 to 99? If they can do, then 75% of the 2G users of 20 Cr. might left its network and ported to BSNL.

 

[Esmail]

Will Vi data users will accept 40-45% hike as against Jio's 25%?

For Vi frankly it's like a well on one side and a valley on the other, no matter which direction it steps the fall is certain, it only has to choose the lesser of the two evils. If it continues with the tariff war to safeguard it's subscriber market share then it's ARPU won't increase and it won't have funds to be able to pay its AGR installments and will have to shut shop completely.
Now if it increases tariffs it will most certainly lose subscribers to Jio but most of the ones who will leave will be the price sensitive segment which anyway generates very low revenue, but in contrast the high stickiness subscribers who will pay the increased tariffs will more than make up for the loss from the low ARPU generating subscribers. This is the only way Vi can survive.