Callertunes Ring Loss in Gigabytes

India’s digital revolution goes awry with telcos forced to go for hefty tariff hike. Jio likely to be least affected.

- Jyotika Sood

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.