Reliance Communications on Wednesday said that it will increase call rates by up to 20% for all its pre-paid customers from April 25 thus becoming the first local telco to raise the headline rates and reduce discounts in an attempt to bolster its bottom line.
The headline tariffs will increase to 1.6 paise per second from 1.5 paise a second, while tariffs on discounted and promotional plans will increase by up to 20%, India's fourth largest mobile phone operator said in a statement.
Headline tariff is the call rates charged to the customers that excludes various discounts.
“At Reliance Communications, we continue to focus on growing profitable/paid minutes on our network and the current tariff hikes are part of our continued efforts to reduce free and discounted minutes, and offset the ever-rising costs of input materials,” Mr Gurdeep Singh, Chief Executive Officer, Consumer Business, Reliance Communications, said.
“We expect RPMs (Revenue per minute) to improve over the next few quarters and this will impact our performance positively,” he added.