Call, data rates to be dearer by up to 40 per cent from tomorrow

Setting the stage for a shake-up in the telecom sector, the country’s three top service providers Sunday announced tariff hikes for the first time in around five years. While Bharti Airtel and Vodafone Idea Limited announced rate hikes on pre-paid packages by up to 42 per cent beginning December 3, Reliance Jio said it is introducing “all-in-one” or AIO plans, which will see tariffs marked up to 40 per cent higher than previous plans and will be effective from December 6.

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While the move may impact over 900 million customers served by the three carriers, analysts hailed the move and termed it as “the return of pragmatism and sensibility” within the industry. Competition within the sector had forced the carriers to operate on low tariffs that were putting their bottomlines under stress and had rendered the business model unsustainable.