The Prepaid Telecom Tariff hike does really gives quality of services and should also mean better prepaid plans in India.
The 4G networks of telecom operators still lack adequate coverage in all parts of urban cities and are mostly congested due to lack of capacity. Will 4G networks improve after the tariffs increase? Not necessarily. But telecom companies should definitely work to improve coverage and capacity as quickly as possible.
Synopsis
- India will soon see the implementation of prepaid rate hikes.
- Airtel has kindly invited Jio and Vodafone Idea (Vi) to join their efforts to raise rates in the industry.
- Now it's only Jio and Vi's turn when they want to proceed with the commission increases.
India will soon see the implementation of prepaid tariff hikes. Now, we have been talking about this for quite a few days since Airtel dropped the basic two circle Rs 99 plans. Airtel has kindly invited Jio and Vodafone Idea (Vi) to join their efforts to raise rates in the industry. Now it's only Jio and Vi's turn when they want to proceed with the commission increases. But while telecom companies are rolling out 5G and raising rates for 4G plans, they aren't talking about how existing 4G services will be improved. Of course, if they have more revenue and more profits, they will be able to reinvest more in networks and improve performance. But India has yet to see as smooth and high speed 4G coverage as users from some international countries get.
If consumers have to pay more to consume the same quality of services, it will create a huge gap in the market. This could be a bad thing for existing operators as it would open up opportunities for new players to step in. I highly doubt that any conglomerate or individual would want to invest in the Indian telecom market where the tariffs are extremely low. quick returns, but it would certainly present an opportunity for a player like Adani.
Adani Group already has a unified license and 5G spectrum in its purse. While Adani Group has made it clear that it will only focus on the corporate business for now, it can quickly change plans if an opportunity presents itself. The 4G networks of telecom operators still lack adequate coverage in all parts of urban cities and are mostly congested due to lack of capacity. Will 4G networks improve after the tariffs increase? Not necessarily. But telecom companies should definitely work to improve coverage and capacity as quickly as possible.
The effect of the telecom tariff increases would also require at least two quarters to be reflected in the revenues of the telecommunications operators. So it would take some time before they can take advantage of it and implement that advantage in their networks.
