Rising data prices raising concern, says MoS IT

The fast spread of digitisation, according to Raejev Chandrashekhar, Minister of State for Electronics and IT, is raising concerns about the cost of data and gadgets.

The telecom companies intend to raise the prices for their cell services. Airtel has already started the pricing increase process in nearly 9 circles by eliminating the base plan of Rs 99 from each one and replacing it with Rs 155, which will now serve as the new base price for users.

While this is advantageous for for the cash-strapped and indebted telecom sector, it may work against the rapidly expanding market for digital services.

The fast spread of digitisation, according to Rajeev Chandrashekhar, Minister of State for Electronics and IT, is raising concerns about the cost of data and gadgets. Smartphone prices are increasing as a result of supply chain problems, and telecom providers are considering raising rates.

In accordance with a PTI report, the minister is not entirely aware of Airtel's tariff increase, but the ministry is looking to contact the industry regulator to investigate the impact that the tariff increase will have on consumers and determine whether or not it will have a long-term effect or be restricted to short-term.

The first telecom provider in India to increase rates once more in 2023 is Airtel. The telco aims to achieve its short and long-term monthly average revenue per user (ARPU0 targets of Rs 200 and 300, respectively.

Vodafone Idea is likely to hike prices in a similar fashion to Airtel. For Q2 FY23, Airtel's ARPU was 190. It's anticipated that the ARPU amount might increase to Rs 194 in the third quarter.

Airtel also aims at under paying consumers to switch to high-paying plans in order to accomplish that, therefore eliminating the s 99 plan will help the business increase its ARPU.