RCom Announces Hike in Tariffs by upto 20%

As part of its efforts to offset the rising input cost, Reliance Communications has announced a rise in tariffs by up to 20 per cent for all its pre-paid customers. The revised tariffs will be applicable across the country with effect from April 25, 2014. The headline tariffs will increase from 1.5 paise to 1.6 paise per second, while tariffs on discounted and promotional plans will increase by up to 20 percent.

“We expect RPMs (revenue per minute) to improve over the next few quarters and this will impact our performance positively,” said Gurdeep Singh, Chief Executive Officer, Consumer Business, Reliance Communications.

The hike is part of the company’s endeavour to improve profitability and off-set rising input costs.

Earlier, its main rivals, including Bharti Airtel, India’s largest telecom operator, and Vodafone, have raised voice prices for the first time in three years as they continued to cut discounts previously offered to lure customers in a highly-competitive market.