Impact of telecom tariff increase in July, customers decreased, data consumption decreased

The increase in tariff rates made by telecom companies in July is now creating problems for the companies. On one hand there has been a decline in the number of subscribers, on the other hand there has also been a decline in data consumption. This is the first time that data consumption per user has been seen decreasing in the country.

decline in data consumption

Data from July to September 2023 has been released by the Telecom Regulatory Authority of India (TRAI). According to the report, before July, on average 21.30 GB data was being consumed per person per month, which has now reduced to 21.10 GB. This shows a decline of 1%.

In July, telecom companies had increased their tariffs by 10-25%. This increase has increased the profits of companies, but there has been a decline in data consumption. This decline has been seen for the first time in the last several years.

Analysis of Telecom Shares Movement

airtel performance

Talking about Airtel’s performance in the stock market, it is trading at Rs 1610 with a gain of Rs 12.40 (0.78%).

• Today’s highest level: Rs 1611.25
• Last week’s performance: 0.65% increase
• In a month: 2% decline
• In three months: 5.25% decline
• in the past year: 57.52% increase
• In the last three years: 135% increase

Vodafone-Idea performance

Vodafone-Idea share is performing flat and is stable at Rs 8.01.

• in a week’s time: 0.65% increase
• In a month: 3.5% decline
• In three months: 21.4% decline
• in one year: 50% decline
• In three years: 47% decline

Causes and effects of tariff hike

increased pressure on customers

As tariff rates increased in July, many customers changed their plans or switched to limited usage. This is believed to be a major reason for the decline in data consumption.

Meaning of reduction in data consumption

The decline in data consumption means customers are now using the internet for shorter periods of time. This is not only a challenge for companies, but can also have a negative impact on the digital development landscape in India.

Future challenges and solutions

corporate strategy

Telecom companies will have to adopt new strategies to counter this situation.

• Customer-centric plans: Attractive plans with low rates should be offered.
• Expansion of digital services: New offerings should be made in areas like streaming, e-learning and gaming.

customer priority

Consumers now expect more value-for-money services. Companies will have to provide services keeping these requirements in mind.