Mumbai, July 29: Eyeing to mince profits from the huge investment made in the telecom sector, Mukesh Ambani's Reliance Jio is all set to increase the prices of its subscription plans, says a report. Though it is expected that the tariffs would be raised gradually as to ease the price competition between the three large telcos.

According to a report, released by the Fitch Ratings, it said, "We expect Reliance Jio (Jio), a subsidiary of Reliance Industries Ltd (BBB-/Stable) to raise tariffs gradually as it starts to focus on monetisation of its large investment." The rating even claims that due to this, not much impact would take place in the market, lead by Bharti Airtel, Reliance Jio and Vodafone-Idea. DCC Approves Rs 3,050 Cr Penalty on Airtel, Voda Idea; Telcos Plan Legal Recourse

As per the data, the revenues generated by the telecom industries in India remain to be one of the lowest globally - Rs 122/per month. Considering this low revenue generated, the report points out, as the Economic Times quotes, "We believe that Indian consumers can afford to spend more on mobile services. This is evident from average monthly user data consumption increasing by 10 times since Jio’s market entry in September 2016, even though the average industry tariff has declined by over 50%."

Unlikely the data consumption after the hike in tariff might not suffer, as analysts point out that consumption of data is driven by the cheaper tariff and growth of more affordable Chinese smartphones. They even opine that the telecom operators need to increase the data tariff per megabyte slightly so that much effect on the data consumption can't have adverse flow.

(The above story first appeared on LatestLY on Jul 29, 2019 06:17 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).