An official announcement has been made by telecom operator Reliance Jio that in the next few weeks, the company is going to increase the tariff plan for the users. Due to the continuous losses in the telecom market, Jio has introduced separate IUC vouchers for calling on the remaining networks in the past and now the company is going to increase the tariff. Earlier, Airtel and Vodafone-Idea have also made announcements related to making their plans expensive.
Reliance Jio’s subscriber base may be large, but the company continues to suffer losses. Jio also lags behind Vodafone Idea and Bharti Airtel in terms of customer (ARPU) on average revenue which reflects performance in the market. In the September quarter too, the average revenue of Jio was reduced by 3 per cent to Rs 118 per customer. To improve the situation in the market, Jio has also announced to increase its tariff plans after the announcement of Airtel and Vodafone Idea.
Telecom market volatility
Jio had earlier said that the ratio of outgoing and incoming calls on Jio network is much higher than others. When IUC was implemented in April 2017, Jio had 90% outgoing calls and the number of incoming calls was only 10%. That is why the deadline of 31 December 2019 had to be fixed for implementing TRAI BAK. In such a situation, the IUC charge for the companies has not been able to bring stability in the market and it has become necessary to increase the tariff.
Separate IUC Packs for Users
Let me tell you, amidst the scuffle in the telecom market on Intconnection Use Charges (IUC), Bharti Airtel had asked the telecom regulator to extend the period of termination of IUC. Earlier, its deadline was 2020 and was to be completely eliminated by January 2020. Jio wanted to eliminate this charge and due to this, users are now having to recharge directly for IUC minutes.