Vodafone Essar and Idea Cellular, hiked telephone tariffs by 20%, in line with the recent Bharti Airtel move. According to industry sources, the tariffs were increased few days ago, even though both the companies declined to comment on the news.
Last week, Bharti Airtel, the largest telecom operator by subscriber base, had raised rates for pre-paid users by 20 per cent for certain packages across several circles. It had cited declining margins and high 3G and BWA auction prices as reasons for the hike.
[advt]While Bharti had over 167 million subscribers in May, Vodafone and Idea had 139 million and 93 million users respectively, according to the data from Telecom Regulatory Authority of India.
India is the world’s second-largest mobile market after China. In the past few years, it witnessed a cut-throat tariff war which led to the boom in the sector — and one of the lowest call rates in the world.