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The monthly mobile phone bills of the users may swell by about 30% within this year, say the operators as India's attempt to cut down reduce the losses and to boost the stagnant revenues. This move is due to the 20% increase in July 2011 which is first hike after all the operators reduced the tariffs in 2008.
Vodafone has reduced the postpaid charges silently in January by 20% in New Delhi and also plans to impose it on the other regions. Its rivals are also set forward to follow it this month. After March, telcos will increase the tariff of prepaid consumers who are about 96 %.
In order for the industry to keep its head above the water it has to have its minimum requirement of 20% to 30% hike within this year says an executive who is close to Bharti Airtel. An executive claimed that even BSNL which didn't raise tariff last time is planning to do so this year.
The same way a person close to Reliance Communications claims that the industry requires high charges to resolve its debt of Rs. 275,000 crores. Leaving aside the top three, the other operators are losing about Rs. 800 to Rs. 1,000 every quarter.
In India, about 400 million users joined in the last couple of years but when it comes to the revenues it increased only by 10%. The users made an average usage of has decreased from 465 minutes in 2007 and 350 minutes now.
The industry has experienced a 9% inflation in these two years and has paid about Rs. 70,000 crores for the 3G spectrum. In spite of these, the services have failed to take off. The director of Vodafone claims that the government is extracting more from the industry and the operators have no other alternative left.