Reliance Hikes Mobile Call Rates By 25%

Reliance Communications (RCom) hiked mobile call rates by 25%. This will
help RCom to lessen its debt. Recently, Rcom also disconnected 21
million inactive customers who had not used their mobiles for 60 Days.

This step by Rcom may initiate another round of mobile tariff hike by
other companies also. On October, 2011 last Airtel hiked mobile call
rates by 20% and all companies followed it.

RCom has revised its base tariffs from 1.2 paisa/Second to 1.5
paisa/Second in four Circles- Bihar, Gujarat, Himachal Pradesh and
Madhya Pradesh.

RCom will implement this new tariff across India in the next 30 Days.

Recently, Idea also hiked call rates in some Circles. So, is it a sign
that Call rates in India will be hiked further more when 2G Spectrum
Auction will be over?