Mobile tariffs in India are among the lowest in the world. Intense competition in the industry continues to put downward pressure on tariff levels, and the declining trend is accelerated by customers’ price sensitivity and subscriber growth from the bottom of the socio-economic pyramid. The price war among operators has intensified recently, and some of the price plans offered are of questionable financial viability. This report discusses operators’ current pricing strategies for low-ARPU customers, and ways that pressure to engage in a price war can be mitigated.
