Reliance Communications up 4% on pre-paid call rates hike

Shares of Reliance Communications were up 4 percent after the company raised basic rates for both GSM and CDMA pre-paid mobile-to-mobile calls by 33 per cent to two paise per second from 1.5 paise per second.

According to details on the company's website, it will charge base rate of two paise per second for mobile-to-mobile calls. The base rate, or the headline tariff, applies to customers not covered under any special scheme offered by their telecom operator. Also read: Buying opportunity seen in Bharti Airtel: Sukhani

When contacted RCom did not offer any comment. Earlier this month, the company increased mobile call rates up to 30 per cent for both GSM and CDMA pre-paid customers to improve the profits. The increase in mobile-to-mobile call rates among old players, except Aircel, has gone up by up to 100 per cent in last two years. The frequency of increase in call rates and telecom services increased following cancellation of 122 second generation (2G) telecom licences by the Supreme Court on February 2, 2012. While Bharti Airtel started with higher base tariff, or the headline tariff, of two paisa per second in 2012, other leading players like, Vodafone, Idea Cellular and Tata Teleservices, gradually increased their mobile to mobile call rates to two paise per second. Aircel is charging a maximum of 1.75 paise per second from its mobile services users that are not covered under any special or discount scheme of the company. New telecom players such as Uninor, MTS (Sistema Shyam) and Videocon--who entered in to Indian market in 2008 – have not increased their call rates yet. At 11:22 hrs IST, shares of Reliance Communications were up over 4 percent.