The telecom sector recently underwent a tariff hike, a complete opposite of the tariff war that was brewing in the sector a few months back. But have customers accepted this hike? According to Himanshu Kapania, managing director of Idea Cellular, the rate hike will impact customers over a one year period, not immediately. “Most of the existing subscribers continue to be at the existing tariff rates” he said to CNBC-TV18 in an exclusive interview. He adds that the overall impact of the tariff won’t be higher than 4-5%.
Kapania goes on to say that any further hike in tariff depends on the long term revenue growth. “The key performance indicator that we measure as a company is absolute revenue growth. If we continue to have unabated growth, then there may be a little tweaking of rate possible” he said. However, if any of these factors gets affected, the company will be wary to make any further experimentation.
In terms of the company’s penetration in the 3G space, Kapania said that they currently service 95 million customers. “But we should be able to cover close to about 250 to 300 million customers by the end of the year” he added.back
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