
Tariff hike by Reliance Jio has delighted incumbents like and Airtel and Idea. Here's why
India TV NewsReliance Jio’s move to increase tariffs has come as much-needed reprieve for incumbent mobile telecom firms which have been bleeding as a result of the new entrant’s disruptive prices and freebie offers. Last week, Jio reduced the validity period on its popular Rs 399 plan from 84 days to 70 days, implying a 20 per cent price increase. On Monday, share prices of Airtel jumped to a more than eight-year high while Reliance too hit a record on the first day of trading since Jio's announcement last week of new high-end data tariffs. The increase in tariffs also expected to expand Jio's average revenue per user by up to 20% and is a positive for the telecom sector which is seeing rapid consolidation, a report by Philip Capital said. The Credit Suisse report, however, noted that tariffs effective after Jio’s increase still stand 65 per cent lower than an average smartphone customer was paying before its launch.
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