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RCOM expects full impact of tariff hike in two quarters

17 Aug 2011 Evaluate

Reliance Communications (RCOM), India's second-biggest mobile phone carrier, expects to see the full impact of recent call price increases in two quarters. Recently, RCOM increased call charges by 20% from 1 paisa to 1.2 paise per second for both GSM and CDMA services in most of its operating circles. The company had hiked the call tariff due to inflationary pressure in the country.

In case of GSM services, the hike has been for calls made within Reliance’s network and on other networks. For CDMA services, the hike is only for calls made to the network of other telecom companies. Earlier in this month, telecom players namely Bharti Airtel, Vodafone and Idea Cellular, increased their tariffs by a minimum of 20%.

RCOM reported net loss of Rs 272 for the quarter ended June 30, 2011 as compared to net loss of Rs 491 million for the June quarter of the previous year. Its total income has decreased by 10.42% at Rs 2854 crore for the quarter from Rs 3186 crore for the corresponding quarter of the last fiscal.

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