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From the first week of December, Airtel and Vodafone-Idea are expected to raise their tariffs, and users will need to pay more. But is the tariff hike necessary? Telecom companies don’t have too many options.
Almost every Indian has a mobile phone now (chart 1), though all do not use data. This has resulted in an explosion in data consumption (chart 2). An average Indian now uses 10 GB data per month.
This is a direct result of the price war between Reliance Jio and the two incumbents. Telcos reduced their tariffs so much that they earn only Rs 75
