Reliance Communication has today hiked both Prepaid and Postpaid tariffs in 4 circles across India by 25%. Reliance customers in Himachal Pradesh, Bihar, Gujarat and Madhya Pradesh would be charged 1.5p/sec for every call as a default rate. Reliance further said the tariff hike would be implemented across India within a month.

Technically it would help the company improve its cash inflow and there by reduce its massive debt. But how would the market react to this. Reliance GSM has one of the worse network across circles, recently Reliance de-activated about 21 Million non active subscribers, there are still many more non active customers to be deactivated from its network.

I do not see other Incumbents following Reliance footstep and hiking tariffs again. What are your opinion about this tariff hike by Reliance..???