What happened so that telecom companies raised their prepaid rates

why increase preped rates

Gone are the days of cheap calls and internet, Jio, Airtel, Vodafone, Idea all companies have announced a huge hike in the tariff for prepaid products and services, after five years, telecom companies have made such a huge increase in prepaid tariff.

This can increase the mobile bill of all customers by up to 50%, the loss-making telecom companies have given a big blow to their prepaid customers, cheaper call and int The days of the net seem to be gone, the Indian company Airtel and Vodafone, Idea have announced a hike of 15 to 40% on Sunday, this increase will be applicable from December 3, Jio has also announced a new tariff plan of 40 on Sunday. Announcing an increase of up to percent, Reliance Jio said in a statement that its new plan “All in one” will be implemented from December 6.

Jio aforementioned in a very statement, “Jio can bring Associate in a Nursing all-in-one set up with unlimited voice and knowledge. This plan will have a fair usage policy for calling on other mobile networks.”

The new all-in-one plan is up to 40% costlier Will, “Jio has 33 million subscribers.
The same Vodafone, pre-paid users can now pay 50 percent more price for the phone call and DATA on Idea’s network, to understand that the 12 GB data plan of Idea Vodafone was earlier Rs 999 and now it is Rs 1499. Is done
Similarly, in Airtel’s new plan, the everyday tariff has increased from 50 paise to 2.85 rupees, if you talk about the plan of 169 rupees from the new plan of Airtel, then the customers may have to pay more than 46 percent, the same for Vodafone. Airtel has around 38 crore subscribers, while Airtel has around 28 crore subscribers.

This has happened after five years

It is worth mentioning that due to fierce competition from telecom companies, call and data charges became very cheap in India, which is increasing now.

Why are companies increasing tariffs —

Vodafone suffered the biggest loss of Rs 50,922 crore in the Indian corporate sector in the second quarter of this financial year due to the Supreme Court ruling on adjusted gross income [AGR]. is.
Apart from this, the company has a huge liability of Rs 1.17 lakh crore, Airtel has a loss of Rs 23,045 crore in the second quarter of this financial year, so companies had no other option but to increase their tariff.

What happens AGR —-

Adjusted Grass Revenue [AGR] is the uses and licensing fees charged by telecom companies by the Department of Telecommunications [DoT] of the Ministry of Communications, consisting of two parts – spectrum usage charge and licensing fees, which are 3-5 percent and 8 percent. .

The Department of Telecommunications states that the AGR should be calculated on the basis of total income or renewal of a telecom company, including income from non-telecom sources such as deposit interest and asset sales. Telecom companies, on the other hand, state that AGR should be calculated only on the basis of income from telecom services.

The telecom companies then challenged it in the Supreme Court, the Supreme Court in its order dated October 24, 2019, upheld the stand of the Department of Telecommunications and empowered the government to make an outstanding adjusted Grass Revenue of about Rs 94,000 crore [AGR ] With the recovery, interest, and penalty from the telecom companies, it goes to about 1.3 lakh crore rupees, the court asked the telecom companies to make the arrears within three months.

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