The spectrum Auction is over the government got more that it even budgeted for. The industry has a new combined debt of 61162 crore rupees.The industry is already reeling under high debt, poor margin and fierce competition, which will only increase with the new players like Reliance Jio coming in.
In order to maintain profitability, telecom operators are expected to cut down the freebies and discounted minutes immediately, and may also increase the tariffs gradually.They cannot pass on the entire increase to the customers as the competition will not allow them to do so. We can see the freebies going away and a gradual increase in tariff by 1 to 3 paise per minute.
Time to learn how to use the mobiles less and speak lesser or one could see monthly costs increasing.
In order to maintain profitability, telecom operators are expected to cut down the freebies and discounted minutes immediately, and may also increase the tariffs gradually.They cannot pass on the entire increase to the customers as the competition will not allow them to do so. We can see the freebies going away and a gradual increase in tariff by 1 to 3 paise per minute.
Time to learn how to use the mobiles less and speak lesser or one could see monthly costs increasing.