From July 2024 the three major telecom sector companies increased ( tariff hike ) their price almost 12 to 25% prepaid and postpaid.
Firstly it is announced by Jio and after that Airtel and Vodafone Idea also behind the que of jio for tariff hike price after 3 july 2024.
By giving the reason as, they have never increased their price since last 3 years, so due to inflation the price increased.
The reason that inflation increased in the country therefore the telecom companies increasing their recharge plan.
Telecom Regulatory Authority of India (TRAI) on tarrif hike price
TRAI stated that The increases are within the prescribed regulatory framework and essential for the financial viability of the sector.
TRAI emphasises that the government will not intervene in free market decisions. As the investment in 5G/6G.
When we go through their previous net profit data we found that the companies making more profit as, the telecom sector has limited provider of networks service.
Habits of dependencies on Internet
The factor’s that today’s world every person is using internet clicking online one click, food delivery, shopping clothes, Glossary delivery, Vegetable, Banking, booking ticket railway, Air, bus, sports and so on means all the things are becamed online.
While this website and all the reels posting on internet becomes a habits to everyone.
Once at time it was fight to reduce the internet price and calling by the service providers such as Airtel jio Vodafone and all the small telecom sector service provider.
When we look the past scenario the observance is that all the small sector telecom service provider dead.
The giant telecom service provider sustained and the competition in the market reduce as the players remain countable in a few 123 that is Airtel jio and Vodafone Idea.
This opportunity given to giant player as the competitors means small telecom service provider unable to sustain.
When there was a race to reduce the price and giant companies looking pre plan to capture the consumers.
Small telecom service provider dead
Aricel, Uninor, Tata docomo, and other regional telecom service provider pre planned accidentally killed by these Giant telecom companies.
After the ways of road of competitors became clear, the giant companies, killed option choice, this become compulsion to use consumer their service instead of not willing to do so.
Jio reliance Telecom 2024 net profit
The financial net profit summary of jio Reliance telecom service is 11.9% Rs 20,372 crore 2024 half yearly.
The company are increasing their profit day by day as, they freebies strategy to capture the consumer of other telecom sector and killed their Competitors in the relevant market.
The habit and greed always bring you someday into drain these two words smartly can be fit into the jio establishment into the telecom market.
Jio past strategy to polarized the consumers
When jio came into the telecom market with the advertisement I.e. “Dhan dhana dhan”, this advertisement want to express and try to explain that till before it’s entry every telecom companies lotted the consumers.
And now the jio came to protect the consumers from extra amount which they were paid till now, now it’s time to save their money and jio is in favour of it.
When the jio start into the market they provided there subscriber to unlimited data and calling by this service some consumer of other Telecom shifted their interested towards jio Telecom.
And by this known that the jio capture the market in a huge amount, when go through the graph of the market found that the jio grabbed the opportunity by providing free service from their Foundation days.
When the habit of the consumer to use internet, then they willing to abandoned but the Habit didn’t allowed him.
Since the jio entered into the market and abusing the dominant position smartly, the user of Internet increase in India approximately every second person in a family is using internet.
Jio brought the revolution once at time that every telecom companies compulsion to reduce their recharge plan price. When the jio entered into the market.
Jio recharge price hike list 2024
2024 July the jio and other telecom sector increased their recharge plan, the below table image shows the price high comparison of jio amount of recharge.
Airtel recharge price hike 2024 price list
Net profit of airtel at Rs 2,071.6 crore for the financial year 2023-24. The company had registered a profit of Rs 3,005.6 crore during the same period last year.
Vodafone Idea recharge price hike list 2024
Vodafone Idea revised its mobile service tariffs by around of 10% to 24% , 2024. The Vodafone Idea upcoming ₹18,000 crore Follow on Public Offer (FPO) has received support from the government.
The government had tried to revive this telecom service provider to increase the competition in the telecom service market.
So that the competition exist in the relevant telecom service market means the choice option should be remain in existence to the consumers.
What is Cartel in competition?
According to the competition Act 2002 of section 2 definition clause (c) talks about cartel.
“Cartel” includes an association of producers sellers, distributors, traders or service providers who, by agreement amongst themselves, limit, control or attempt to control the production, distribution, sale or price of, or, trade in goods or provision of the services.
When analysis the timing of sequence price hike one after one of these telecom service provider it looks like that they were pre planned and had hold the price.
After competitors in the relevant market got out, they waited and watched opportunity so, that no option will be left to choose and shift to another service provider.
The timing of the announcement of price hike of tariffs at the same time , doubt and looking like the Cartel system formation between these three giant service provider.
As there is no option to shift to other telecom service provider, one of us available that is BSNL but service of this provider not satisfactory to consumers. Though it is government initiative company for people.
The government has to improve their service of BSNL and may provide option of opportunity to the people to choice their and can maintain the competition in the market.