India's RCom to Hike Voice Call Tariffs by 20 Percent

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India's debt laden Reliance Communications (RCom) has announced plans to raise tariffs for all its contract customers by up to 20 percent from the 25th April as the Indian telecoms industry slowly lifts call costs for its customers.

While most of the other networks have focused on cutting discounts but leaving the headline rates untouched, RCom has decided to go for the headline rates themselves.

The main voice call tariff will rise to 1.6 paise per second from 1.5 paise a second, while tariffs on discounted and promotional plans will increase by up to 20%.

The company's CEO, Gurdeep Singh said that RCom continues to focus on "growing profitable/paid minutes on our network and the current tariff hikes are part of our continued efforts to reduce free and discounted minutes & offset the ever-rising costs of input materials,"

The move could spur the other mobile networks to stop tinkering with cutting discounts and lead to an industry wide hiking of the headline rates, leading to improved finances all round.

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Tags: reliance communications  India 

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