Thursday, 21 November 2019

BSNL to also go in for tariff hike next month Dec 2019

New Delhi: State-owned Bharat Sanchar Nigam (BSNL) is reviewing its mobile tariff plans and will raise prices from December 2019, following the hikes announced by private telecom carriers.

Owing to a tariff hike by Reliance Jio in its voice and data packages, rival companies Vodafone idea and Airtel said they would increase tariff with effect from December this year 2019.

“We are presently examining our voice and data tariff and will increase it from December 1, 2019,” a senior BSNL official, who does not wish to be identified, told ET. However, the person didn’t elaborate on the quantum of the proposed hike but added that it would be conveyed to the subscribers in the coming weeks.

Earlier this week, Vodafone IdeaNSE -4.96 % and AirtelNSE -2.72 % said they would increase tariff with effect from December this year following sectoral stress. The move by the two telcos was followed by their arch-rival Reliance Jio, which on Tuesday said that it would also raise its tariff in the next few weeks if directed by the regulator.

In October, the Centre cleared a Rs 74,000-crore revival package for the two loss-making public-sector telecom companies BSNL and Mahanagar Telephone Nigam, but analysts said it might not be enough to make the two competitive.

A tariff hike, however, would help the ailing state-run telco bring in additional cash flows at a time when its revenues are on a continuous slide due to unavailability of fourth generation services, said analysts.

“It will not be a bad move from the consumer perspective. Since Jio’s entry in 2016, tariff and industry revenue were down,” said Rajiv Sharma, head of Institutional Equity Research, SBICAP Securities.

~engineer.ai


Read More at https://economictimes.indiatimes.com/industry/telecom/telecom-news/bsnl-to-also-go-in-for-tariff-hike-next-month/articleshow/72152929.cms

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