Indian telcos hike mobile internet rates by up to 100%

Telecom operators have raised mobile internet rates up to 100% in June-September period across country. Airtel is latest to increase mobile rates by up to 33% while Vodafone and Idea have started gradually implementing the increased mobile internet rates from June. The three companies jointly hold around 57% mobile services market share. While no comments were received from Airtel and Idea Cellular, Vodafone India spokesperson said “Around 2 months ago, we changed the base tariff of 2G for 1GB pack from Rs 155 to Rs 175. This has been carried out in a phased manner across circles.” Airtel and Idea, too, have increased the rate of 1GB 2G mobile internet pack to around Rs 175 from about Rs 155. Telecom operators generally don’t make public announcement about increase in mobile tariff. The change is noticed on their website after the new rates are implemented. They generally inform their post-paid customer through SMS about change in rates of services before their next billing cycle starts. Pre-paid customers, which constitutes over 90% of market, get to know about rate revision when they go to recharge their mobile phone or through website of companies. Telecom operators are required to report change in tariff to telecom regulator Trai. Vodafone and Idea Cellular increased rack rate, charged without any offer or scheme, by up to 100% from 2 paise per 10 kb of data usage to 4 paise per 10 kb. This means on Vodafone and Idea network 1 GB of 2G or 3G mobile internet will cost over Rs 4,000 (from Rs 2,000) which these companies under scheme are selling for around Rs 175. Airtel started increasing mobile internet rates around first week of September. The company is now at par with Vodafone and Idea in terms of rack rate which is 4 paise per 10 kb. However, the increase is only of 33% because the company was already charging 3 paise per 10 kb earlier. The 2G data pack rate of Airtel is highest among the three at 10 paise per 10 kb which means cost of 1GB mobile internet usage without any scheme or offer for a subscriber is over Rs 10,000 which company is now selling for Rs 176. PTI