5G connectivity is around the corner. But for it we have to pay tariff hike. So, that we can have better network and connect in our mobile phones.
On 28th November, Reliance Jio announced hike of tariff charges. These will be come in play from 1st December. In telecom sector Reliance is the biggest player. The hike will cost Rs.91 for base plan against Rs.75 the earlier price. Before Jio, Airtel and Vodafone Idea has already hiked their tariffs.
These increase in tariffs is coming after two years. As telecom industry is preparing for the launch of 5G services. The hike will give companies massive investments. This will be used in better networking and connectivity. Both Airtel and Vodafone have increased tariffs by 25%. Whereas, Jio tariff increase is 21%. BSNL and MTNL have not increased their tariff charges.
After jio announcing increased rates , now 90% of total mobile consumers will have increased rates. Over the last few years telecom industry is moving in direction of monopoly. This happened post 2G scam which led to closure of 8 operators shutting down their network. In 2010 when 3G spectrum was auctioned , it sold at bid of Rs11 lakh crores. In 2016 Reliance Group entered the telecom industry as Reliance Jio. Jio offered free voice calling with data services. Jio offered 4G services at that time in comparison to 2G services
Why This Tariff Hike?
As the telecom sector is growing at a very rapid. New technologies and better connectivity are essential to fulfill the demands of customers. At present around 750 million people are using telecom services. With 5G technology soon coming in, companies are planning to expand more.
The Supreme Court ruling where the operators have to pay their dues in form of AGR. To combat this ruling companies have increased their tariffs . With this increase ARPU [Average Revenue Per Person] will increase too. At present ARPU for Airtel is Rs 153, Reliance Jio ARPU is Rs 144 and Vodafone ARPU at Rs 104.
But this is not the end of tariff hikes, customers have to pay more and more as time moves. One main reason for this is capitalization of telecom sector. Government and State holding telecoms like MTNL and BSNL are suffering huge losses. So, people are forced to depend on private operators for better networking. This trend will continue as mobile connectivity is essential for all of us. Corona has made us more dependent on mobile data and network.