KOLKATA: The turmoil in the telecom sector is getting easier with the stable prices for the last three quarters and some industry officials and experts are increasing tariffs in the next two quarters. This could be more than two years of rock-bottom prices for Indian telecom consumers.
Officials said that there may be some leaning in the next two quarters for testing the market reaction, but noticeable pricing power can return only after six months. But the key for this is Reliance Jio Infocomm, which has kept a fairly stable since January.
Since its entry in September 2016, Geo’s pricing aggression has forced clients to match the rates to maintain consumption, voice and data services.
Subscribers benefited but the old mobile phone companies of India were hurt. Small carriers who could not face brutal price war and the industry consolidated three big private players – Vodafone Idea and Bharti Airtel between old and Geo – making it the ideal market position for pricing power to come back over time. Staying, analysts are said to be.
Vodafone Idea, Bharti Airtel and Geo did not respond to queries.
A weak rupee and rising bond yields have increased the cost of money, which connects the burden of telecommunications, especially the financially stressed old carriers.
“The end of the freebies for mobile consumers are finally coming to an end because the high cost of money is definitely harming telecommunications and is particularly pressurizing the officials, which should increase some tariffs in the next two quarters. ” Sanjeev Bhasin, Executive Vice President, Market, and Corporate Affairs, IIFL told ET.
He said that no one should be “after April 2019” on the pricing front.
Since most of the tariff pack bundles are offered after the Geo era, Texas can restore the slow-moving people so that customers upgraded to high-value deals to receive the same amount of data and free voice calls. Can go He said that in order to promote total revenues, a tailor can pick up a selectively “slight increase in the monthly rental of some bundle packs”.
Some different voices and data plans can be represented.
Director Nitin Soni, director of Global Rating Agency Fitch said, “The lack of tariff reduction for several months shows that” Geo can excel and promote promotion, which will probably be adopted by the office bearers. ” ”
The last disruptive tariff cut was in January this year when Geo made the lowest cost plan in the area, which offers a free voice to the life of jio phone users, with a GB data speed of 4G at the speed of 28 days There is a duration of Rs 49 per month. Soni said that the 2.4% sequential increase in adjusted gross revenue (AGR) for the period of April-June has indicated that “the recovery of the area has started and the improvement in data tariff in ARPU (average per user average) There is a limited room for further fall on the station. ”
Some are skeptical, saying that this may be a temporary reduction and this new customer of Zia depends on the additional plans.
Rajan Mathews, Director General of Cellular Operators’ Association of India (COAI), said that the representatives of all major telecoms, Rajan Mathew said that increasing the prices of the operators to invest in improving the quality of service during voice and data usage. Is required.
“But competitive pressure is likely to keep today’s tariff rates for the next two-three-three quarters, and there will be a challenge between re-consumption revenue, high diesel cost and weak rupee for consumption.”
Sanjay Kapoor, CEO of East Bharti Airtel, said that the steady price of Geo does not mean that the market cannot be interrupted.