Cheap rate regime to go

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By The Telegraph Online
  • Published 11.11.13

New Delhi, Nov. 10 (PTI): Vodafone expects call and other service rates to go up every year, indicating that a low tariff regime may not be sustainable any longer for the industry.

“We had lower tariffs for 18 years against an inflation of 8-9 per cent per year. Now, can you do that forever? No you can’t,” Vodafone India managing director and chief executive officer Marten Pieters said.

“So the point has come where lowest has been seen, we will have to increase our tariffs every year, depending on the cost levels,” he said.

Last month, the company increased 2G mobile Internet rates along with two other players, Airtel and Idea Cellular, in the range of 25-30 per cent.