According to Cellular Operators Association of India (COAI), increase in mobile calls tariffs and internet rates will be beneficial for customers, boost government revenue collection and help in creating more employment opportunities by improving the financial health of the sector.

Recently Bharti Airtel and Vodafone Idea announced they will be increasing mobile calls and internet prices for prepaid customers by upto 50 per cent. The new prices will be effective from December 3, 2019.  Meanwhile, Reliance Jio has also announced that it will roll out new plans on December 6, 2019. These new plans will be priced 40 per cent higher than the current rates.

As per COAI, decline in mobile services rates that followed in the preceding years has caused a decline in government revenues.

COAI is of the view that the current price hike will bring some relief to the financially distressed telecom sector and will enable the telecom operators to make investments.