moves individually across all our circles. We are inclined to follow to maintain consistency and competitive position though we haven’t decided on our precise circle-wise moves,” the company said in a statement.
The development saw Bharti's share close up 4.44% on the BSE at Rs 367.25 while Idea's closed up 0.72% at Rs 118.50.
Headline tariffs in the industry currently vary from circle to circle and operator to operator, and ranges from 1.2 paise per second to 1.5 paise per second. But what actually comes into the hands of the operators is a very small amount, ranging between 27 paise per minute for newer operators and 43 paise per minute for incumbents. Tariffs at which customers are acquired are much higher, ranging between 43 paise per minute to 60 paise per minute. Operators are now trying to raise the realisable amount.
Explaining the kind of changes done in the tariffs at Bharti Airtel, an official said that in some circles full talk time was being offered in recharge vouchers for as low as Rs 30, which has now been raised to Rs 50-60. Further, minutes given in special value vouchers have been reduced in some cases. For instance, if a special value voucher for Rs 71 came with 135 minutes, it could have been revised to Rs 97 for 125 minutes. Similarly, on a smaller denomination, a special value voucher for Rs 22 for 50 minutes could have been altered to Rs 22 for 40 minutes. In some cases, the number of days the voucher remains valid has been brought down. For instance, for the Rs 45 voucher, the validity could have been brought down in some cases from 14 days to 10. Through such measures, the company would be able to increase its realisable tariffs.
Mobile tariffs in India are the lowest in the world and operators have been often stated that increased costs require tariffs to go up. In an interview with FE recently, Bharti Airtel's outgoing CEO Sanjay Kapoor had said, “Tariffs have eroded by 40% in the past 10 successive quarters while costs on the other hand have increased significantly.