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Indian Operators To Raise Mobile Data Tariff

Indian consumers, who enjoy the cheapest mobile data rates in the world, will now have to pay more, as two telecoms companies announced that they would increase tariffs.




This comes after the two - Vodafone Idea and Airtel - declared second quarter losses of $10bn (£7.7bn).


The two companies control more than half the market in revenue terms.


Experts say it is unlikely that this will drastically affect rates as India is a price sensitive market.


"If you compare India to the West or even advanced Asian economies like Korea, Japan or even China, you'll find those way more expensive. So any increase is still unlikely to take Indian rates anywhere near that vicinity," technology expert Prasanto K Roy told the BBC.


"The operators' objective is actually to get each user to spend a bit more, increasing their average revenue per user, and then ask the government to help them out by waiving some of the huge outstanding in license fees."


A license fee is what telecoms companies pay the government in order to operate.

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