Broadband companies are going through huge losses and there is a competition among the companies to provide good facilities to the customers. Broadbank needs to increase the rate by 15-20 percent for the existing service to continue smoothly.
Broadband companies preparing to increase internet rates (indicative picture)
After mobile recharge, now it is Broadbank’s turn. After the increase in mobile recharge prices, the rates of cable internet coming to your home may increase. For this, broadband companies are crying for inflation, as argued by mobile companies. It is believed that the days of cheap telecom tariffs are about to pass because the broadband companies have also made preparations to increase the rates of internet plans.
Broadband companies say that at the rate at which they are providing the service, it is difficult to survive and are incurring losses continuously. All the big telecom companies of the country have increased the tariff of mobile by 20 percent by talking about cost and inflation. These companies include Reliance Jio, Airtel and Vodafone-Idea. These companies said that it is necessary to increase the tariff if the telecom business is to be carried forward. First Airtel, then Voda Idea and finally Jio increased the rates of mobile recharge. Plans have become expensive by about 20%.
Preparation to increase rate by 15-20 percent
On the same lines, there is a preparation to increase the tariff of broadband internet as well. Tapabrata Mukherjee, co-founder of Meghbela Broadband in Kolkata, told PTI, “Just as there is an ARPU (Customer on Average Revenue) for mobiles, there is a need for a system for broadband as well. Broadband companies are going through huge losses and there is a competition among the companies to provide good facilities to the customers. Broadbank needs to increase the rate by 15-20 percent for the existing service to continue smoothly.
OTT increased pressure
Looking at the market trend, over the top or OTP streaming service is being provided without any charge. This has increased the pressure on Internet service providers. Mukherjee said national telcos like Airtel, Jio will have to revise their tariffs, otherwise smaller companies will have to parity with the existing tariff structure to prevent their customers from running away. Looking at the current situation, it seems that the big companies of Broadbank do not seem to be in a mood to revise the rate of the Internet.
bad for small companies
Broadband majors such as Airtel and Jio are focused on high value customers who spend more on the internet. Companies with this money earn good money from customers, which helps in improving ARPU. On the other hand, small or local broadband companies have customers who spend less money, but the number of these customers is very high.
There isn’t much competition among these small companies. But if big companies increase their work in smaller cities, then competition will increase and more pressure will be on those small companies whose customers are less spending. This trend has started, so local broadband companies have also started preparing to increase their internet tariff.
Read also: Bank of Maharashtra reduced rates of home loan and car loan, interest rates reduced by 40 basis points
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