A few weeks after phone operators increased the pre-paid system prices, speculation has emerged about postpaid and broadband plans to increase their prices.
According to a report the founder of the broadband company noted that the average per capita income (ARPU) for broadband systems also needs to increase.
PTI news agency quoted Tapabrata Mukherjee, founder of Meghbala Broadband, as saying that broadband programs also needed to increase their taxes by 20 percent.
However, there is no official name from the Internet Service Providers (ISPs) about the rise. Mukherjee noted that almost every ISP offers customers free registration on various over-the-top (OTT) platforms through their state-of-the-art systems that put pressure on ISP costs.
Mukherjee noted that large ISPs are also telecommunications providers and this is where small broadband companies face problems.
“There is a need to increase per capita revenue (ARPU) broadband and internet telecom services,” Mukherjee told PTI. If possible, an increase in the tax on broadband systems occurs, broadband systems at the entry level will cost Rs 150 to Rs 200 more.
“This is an issue that requires a lot of planning and careful evaluation. Because broadband prices are not cheap in India, ”added Mukherjee.
Meanwhile, analysts also speculate that a possible increase in taxes will be paid in the coming months. “The increase is inevitable as India is still the lowest tax country in the world and as rising prepaid rates, postpaid may follow suit,” Prashant Singhal, head of news and entertainment and communications (TMT), EY recently told Financial Express.
Postpaid users make up 5 per cent of Bharti subscriptions and 16 per cent Indian mobile revenue. The report highlights that there is more customer adherence to the pay-per-view component and a greater focus on services and purchasing decisions that do not lead to fluctuations, in contrast to the prepaid segments.
Of all the paid customers in the background, 50 to 60 percent of the subscribers are business customers, 34 percent of subscribers are located in three metro, and another 36 percent in urban A-circles.
Among users, Vodafone Idea has a high market share of 43 percent followed by Airtel with 28 percent.
Airtel, Jio, and Vi announced their tax increases in late November. Telco has realized that the increase will save their average per user (ARPU). Jio noted that it continues to offer very low taxes despite a 20 percent increase in revenue.
