Reliance Mobile Raises Call Prices by a quarter in four circles

Reliance Communications Ltd has raised call prices across four telecom circles and intends to extend the hike to all circles in coming days. 

Reliance hiked base call price to 1.5 paise a second from 1.2 paise, citing rising costs and lower competition.

The company has increased tariffs across Himachal Pradesh, Bihar, Gujarat and Madhya Pradesh.

Reliance Communications, with net debt of $6.4 billion, has underperformed major rivals in operating performance, as of today voice calls account for about 85 per cent of the telecom industry’s revenues.

The recent hike in diesel, which is used to run generators for generators for telecom towers, prices, steep increase in spectrum charges and high competition were eating into the revenues of the telecom companies.

The other operators in the country are likely to follow suit soon, currently voice calls account for about 85 per cent of the telecom industry’s revenues.

How do you look at this move from Reliance is it justifiable does this move make any big difference to end users do let us know via comments.