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Price increase pinches, be it of essential commodities or anything that adds up to the monthly expenses of the consumers.
Over the past six months, Bharti Airtel, the country's largest cellular operator and also the largest private operator of fixed-line broadband, has increased rental charges for its fixed-line broadband services by up to 40% in certain plans.
While the decision to raise the tariff was actually taken in March this year, the company has implemented this in phases. For some consumers, the effective increase was taken place on April 17, 2014, and the process is still on.
This effective increase in broadband rental is different depending on plan and speed. "Due to a rise in input cost, rent for yourbroadband will be revised from Rs 1,599 to Rs 1,749 effective 11 August, 2014,"the company said in a communication to a consumer in New Delhi.
In this case, the effective hikein rental is 9.38%. In March, the company had communicated toanother customer in New Delhi: "Due to an increase in input cost, the rent will be revised from Rs 250 to Rs349 with effect from April 17, 2014."
In another communication to a customer,it mentioned that from April 23, the rental will be increased from Rs 850 to Rs949.Bharti AIrtel had, in March also informedcustomers about increasing minimum speed of broadband to 512 kilobit per second (kbps) from 256 kbps. When contacted, an Airtel spokesperson said, "Tariff rationalisation is a continuous process and a function of marketdynamics.
This price revision of our broadband plans is in line with theincreasing input costs that have a direct impact on the final prices. We remaincommitted to provide our customers the best service at all times."According to an industry expert, companiesimplement price hikes in phases because of technical difficulties.
It may notbe possible for companies like Bharti Airtel, which has 1.4 million fixed linecustomers as of May 2014, to implement the price rise at one go technically. Communicating all the consumers together, and shifting them to the new slab maytake time and companies implement such decisions in phases.
However, the new tariff will only be chargedonce the company communicates to its consumer. On the other hand, according to Telecom Regulatory Authority of India (Trai) regulations services providers haveto give a six month period before changing tariff plans for new consumers orthose who have shifted to a new plan.
However, other private service providers like Hathway, Tikona and state-owned Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) has not increased prices of fixed-line broadband in the past six months.
