By Malvika Gurung
Investing.com -- Telecom major Reliance (NS: RELI ) Jio has announced to hike its prepaid tariffs by 20%, starting December 1, 2021. This comes after its competitor telcos Bharti Airtel (NS: BRTI ) and Vodafone Idea (NS: VODA ) announced increasing their prepaid tariffs by 20-25% last week.
The company announced the tariff hike in a press release on Nov 28, to strengthen a sustainable telecom industry, and has assured to provide its users with the best value plans across the industry.
A 20% hike means that Jio’s entry-level plan of Rs 75 for 28 days, would revise to Rs 91, which is lower compared to the entry plans of Rs 99 provided by Airtel and Vodafone Idea.
The price hike comes at a time when the Indian government has been supporting the telecom sector by rolling out relief packages, to aid cash flow. However, to increase their average revenue per user, growing cost pressures like increasing debts, higher taxes and levies, and upgrading to 5G amid robust competition, telecom companies had to increase their tariffs.
Telecom expert Sanjay Kapoor stated last week that a price hike by Reliance Jio would ‘lead to a benefit of about Rs 9,500 crore for the company in terms of EBITDA’, as per a CNBC report.
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