Jio proposes hike in data charges up to ₹20 per GB over next six months

Hemani Sheth Mumbai | Updated on March 06, 2020

Jio proposes hike in data prices up to ₹20 per GB within the next six to nine months from ₹15GB, according to media reports.

Jio further said that the hike in floor prices for wireless data should be done gradually in order to minimize the effect on Indian consumers who are price sensitive. The floor price should be fixed at ₹15 per GB against the current prices of ₹9 to ₹12 per GB. It should then be increased to ₹20 per GB within the next six to nine months based on data consumption and growth, the Economic Times reported.

This comes after another major telecom player Vodafone Group in a proposal to TRAI had suggested a price hike to aid telecom players with adjusted gross revenue (AGR) dues. Vodafone, in February, had proposed tariff hikes across offerings to raise revenue as per a Bloomberg report.

The company has only paid 7 per cent of its dues so far. Moreover, a decision on relief measures for telcos will be taken only after March 17, after the final hearing of the Supreme Court on the AGR issues as per previous reports.

Put together, the companies owe the government around ₹1.50-lakh crore. Airtel has a liability of ₹35,000 crore, VIL ₹53,000 crore and TTSL ₹14,819 crore in AGR dues.

Jio’s letter was in response to TRAI’s consultation paper, ‘Tariff issues in Telecom Services' where it had called for the regulatory authority’s intervention in rescuing telecom players. Jio has proposed to increase floor price in 2-3 tranches so as to minimise the impact of the price hike.

The telecom major in December had announced new plans for mobile users raising the prices up to 39 per cent compared to older plans for its customers. The company, despite the tariff hikes, provides the cheapest mobile data plans in the country as compared to its rivals.

The telecom operator’s ability to raise tariffs after the recent Supreme Court verdict rejecting modification petition filed by them may help the 4G market leader gain a higher market share, according to a report by SBI Cap Securities.

RJio had also recently bagged the top spot in highest 4G download speed as per a TRAI report.

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Published on March 06, 2020
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