Broadband may see tariff revision in near future: Meghbela

After the revision of prepaid packs by telecom operators, broadband prices may also see a hike in the near future. Not only telecom companies but OTT service providers like Amazon have also increased the membership fees from today. Hence, we may see a possible revision in broadband plans, said a Kolkata-based internet service provider.

The prices can be expected to increase by at least 15 per cent in the coming days.

All the major telcos have raised tariffs by 20 per cent above their respective levels citing the need to sustain business.

“The ARPU (average revenue per subscriber) for broadband like telecom internet services also needs to be fixed as the service providers are bleeding in the current war of customer acquisition. A requirement of 15-20 per cent to make existing services viable. Growth is essential,” Meghbela Broadband co-founder Tapabrata Mukherjee told PTI.

Now, to keep up with the market trend, over the top (OTT) streaming service has to be provided free of cost which is a cost pressure for the internet service providers.

However, he added that national telecom leaders like Airtel, Jio will have to take the lead in revising their tariffs, or else smaller players will have to parity with the existing tariff structure to prevent flight of customers.

There is no indication from the market leaders about the restructuring of broadband rates.

Analysts tracking the region said that major national players operating with urban high-value customers were adding services to help improve ARPU, while smaller regional players had their networks in low-ticket consumer areas. It has its edge with wider coverage in the U.S. where the competition is not so aggressive.

This story has been published without modification in text from a wire agency feed. Only the title has been changed.

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