Reliance hikes call rates by 25 p.c.

MUMBAI, INDIA: Shares of Reliance Communications on Friday surged over 7 per cent after it decided to hike call rates by 25 per cent.

At the Bombay Stock Exchange, the scrip closed 7.82 per cent at Rs.62.05. It had an intra-day high of Rs.62.70.

Reliance Communications has raised the base tariff by 25 per cent to 1.5 paise per second from 1.2 paise per second.

"We have seen on ground competition tapering off. Hence we need to restore back the price," said RCom's mobile business head Gurdeep Singh.

The company, palgued with a debt of more than $6 billion, could leverage this hike in operating cost. The suit may not be followed by other operators immediately, beleive industry insiders. As the operators are keenly watching 2G auction, a clear tariff roadmap is expected to be laid later.

The new tariff is applicable with effect from Friday in four circles and will be extended across the country in next 30 days.

According to the company, the move will help improve topline revenue and operative margins per user.

Reliance has posted a 3.2 per cent consolidated profit in quarter ended June. 

(With inputs from IANS)