Reliance call rates hiked

May 06, 2013 15:51
Reliance call rates hiked

20 to 30% increase in the call rates are announced by Reliance Communications on GSM and CDMA prepaid connections.

The decision is taken, as the company states, to increase the company's profit by increasing revenue per minute (RPM). Plan 21 and plan 45 will be charged at paise 1.20 per second instead of one paisa per second.

The impact is already witnessed on BSE. Scrips are down by 0.27%.

The Company reasons out its increase in the tariff in a down to earth manner telling that the initial pressure of competition is gone in telecom market as small time operator are closing down and as such the pricing power has gone up which means competitive pricing is no more needed to attract customers as per the Chief Executive Officer Gurdeep Singh.

(AW-SriJa)

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