1 min read.Updated: 29 Nov 2021, 06:02 AM ISTLivemint
Jio's move comes days after its rivals Bharti Airtel and Vodafone Idea raised tariffs by 20-25%
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Reliance Jio Infocomm Ltd on Sunday said it will raise its prepaid tariffs by 21%, matching hikes by rivals Bharti Airtel Ltd and Vodafone Idea Ltd, and formally ending the bruising price war that started with the entry of the Mukesh Ambani company in 2016.
Jio’s new plans will take effect on 1 December. The move comes days after rivals Airtel and Vodafone Idea raised tariffs by 20-25%, citing the need for higher revenues to make their operations sustainable.
The tariff hikes will help telecom operators, especially the struggling Vodafone Idea, strengthen balance sheets. Jio’s entry into India’s telecom industry about five years ago, with free phone calls and cut-price data, triggered a tariff war that reduced the number of private operators from about a dozen to just three as others either exited the industry, sold their companies or went bankrupt. The ones that survived continued to lose money.
In a statement, Jio said, “In line with its commitment to further strengthen a sustainable telecom industry, where every Indian is empowered with a true digital life, Jio today announced its new unlimited plans."
“These plans will provide the best value in industry," the statement said, adding that the plans, all offering unlimited voice calls, now start from ₹155 for 2 GB data a day per month with a validity of 28 days, against ₹129 earlier and goes up to ₹2,879 that offers 2 GB/day of data with a validity of 365 days, from ₹2,399 earlier.
Last week, Airtel announced 20-25% tariff hikes for various prepaid offerings and said the mobile average revenue per user needs to be at ₹200 and ultimately at ₹300 to provide a reasonable return on capital that allows for a financially healthy business model. Debt-laden Vodafone Idea also announced increased mobile call and data tariffs across plans by 18-25% from 25 November.
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