Reliance Communications on Wednesday said it will increase call rates by up to 20% for pre-paid customers from April 25, thereby becoming the first local telco to raise headline rates and reduce discounts in an attmept 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, CEO, 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.