RCom hikes calling rates by 25% in four telecom zones

Reliance Communications Ltd. | Telecommunication - Service Provider | Telecom | BSE: 532712 | NSE: RCOM

21 Sep 2012 Evaluate

Flagship company of the Anil Dhirubhai Ambani Group (ADAG), Reliance Communication, in a bid to improve its operating margins, has increased its calling rates by 25% in four telecom zone, thereby setting the stage for all leading mobile phone companies to go in for a second round of tariff hikes in the period of about a year.

The company has hiked its base price from 1.2 paise per second to 1.5 paise, which will initially be implemented in four states and be rolled out across the rest of the county within a month. Further, although the company’s revised call rates will initially affect new customers, the same will be extended to its existing users when the validity of their current tariff plans come to an end.

Reliance Communications, on standalone basis, the company has reported a net loss of Rs 252 crore for first quarter ended June 30, 2012 against net loss of Rs 272 crore for the corresponding period last fiscal. Total income decreased by 6.93% at Rs 2794 crore during the quarter under review from Rs 3002 crore in the year-ago period.

On consolidated, the company has reported a rise of 3.18% in net profit of Rs 162 crore for the quarter ended June 30, 2012 against net profit of Rs 157 crore for the corresponding period last fiscal. Total income increased by 7.54% at Rs 5319 crore during the quarter under review from Rs 4946 crore in the year-ago period.