Mobile calling and internet to become costlier | Fusion - WeRIndia

It seems that the telecom companies in India are once again planning to raise tariffs for the sake of increasing their revenue. From April 1 onwards, the call rates and mobile internet data rates would likely increase.

According to the updates in a report from the Investment Information and Credit Rating Agency (ICRA), telecom companies are planning to increase tariffs from April 1. So far it doesn’t seem clear how much the companies would increase their tariffs.

The report further said that the increased tariffs and the upgrades for customers from 2G to 4G can increase the overall revenue of the companies. The telecom industry is expecting an increase in the industry’s revenue from 11% to 13% for the next two years and operating margin by about 38% in FY 2022.

What should be important to note is that the coronavirus pandemic affected many sectors globally. However, the telecom industry in India is one that did not face a lot of impact. Some statistics revealed that there was even an improvement in the sector as the data usage and calls by customers went up in the lockdown.

Due to the virus, many people started working from home, and as a result, used mobile data in several cases. Many people started using web-based streaming platforms like Netflix and Prime Video on their phones. Those who did not have Wi-Fi in their home depended on their mobile data. Due to all of this, the telecom sector saw more customers using their services.

The total adjusted gross revenue (AGR) outstanding on telecom companies is ₹1.69 lakh crore. However, so far, only 15 telecom companies have paid just ₹30,254 crores.

Coming to the major telecom companies, Airtel owes about ₹25,976 crores, Vodafone Idea owes ₹50399 crores and Tata Teleservices about Rs 16,798 crores. They are obligated to pay 10 per cent in the current financial year and the remaining has to be paid year after year.

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Image Reference: https://pixabay.com/illustrations/communication-internet-1927706/