Advertisement
Tuesday, Nov 30, 2021
Outlook.com
Talktime

Telecom Turmoil: Is India Ready To Brace The Impact Of Rising Call, Data Charges

Saddled with huge losses and even higher debts, the telecom companies have no option but to shore up incomes and margins. Mobile data charges are one of the cheapest in India

Telecom Turmoil: Is India Ready To Brace The Impact Of Rising Call, Data Charges
Telecom Turmoil: Is India Ready To Brace The Impact Of Rising Call, Data Charges
outlookindia.com
2019-11-30T09:52:35+05:30

The October-December quarter is a festive period that offers big opportunities to both sellers and buyers. Companies seek to increase revenues and profits through higher volumes. Consumers look for hefty discounts and attractive deals. This wasn’t true, however, for the telecom sector this time. Saddled with huge dues due to a recent Supreme Court order, telecom players stare at a financial abyss that can cripple or bankrupt them. Mobile users can forget about the good old days when they were hooked to free or low-cost calls, text and data. The four major telecom firms—Airtel, Vodafone-Idea, Reliance Jio and the state-owned BSNL—will hike tariffs this December. They did it in 2018 too, but the increases this time will be higher.

Outlook learns that prices for voice and data may go up 10-25 per cent, though some reports suggest hikes as steep as 67 per cent for voice calls. In essence, it will unleash a transformation within the mobile segment. Companies will change their business models, while subscribers will have to change their usage patterns. It’s a matter of survival—one company is likely to declare insolvency if it is forced to pay past dues, another may be semi-paralysed, and a third may go from bad to worse. The fourth will ­remain unaffected—as the last entrant, its dues are minimal.

Advertisement

Outlook Newsletters

Advertisement
Advertisement
Advertisement

Read More from Outlook

Meet Parag Agrawal: The New Indian Origin CEO Of Twitter

Meet Parag Agrawal: The New Indian Origin CEO Of Twitter

The incoming CEO is an IIT Bombay graduate who joined Twitter a decade back after having worked at Microsoft, Yahoo and AT&T in research positions.

Omicron: WHO Warns World Should Be Wide Awake

Omicron: WHO Warns World Should Be Wide Awake

WHO Director-General Tedros Adhanom Ghebreyesus said the emergence of the highly mutated omicron variant underlines just how perilous and precarious our situation is.

Omicron Scare Looms Over IND Tour Of SA, BCCI Awaits Govt Nod

Omicron Scare Looms Over IND Tour Of SA, BCCI Awaits Govt Nod

Several sporting events have been cancelled due to the new variant of the coronavirus, Omicron. India are scheduled to tour South Africa for a full series.

How New Covid-19 Variant Is Impacting Travel Across States In India

How New Covid-19 Variant Is Impacting Travel Across States In India

India has issued fresh travel restrictions for international travellers coming from 'at risk' nations in the wake of the Omicron outbreak across several countries in the world.

Advertisement