The country's largest mobile services firm, Bharti Airtel, today hiked call rates in six telecom circles, by 20 per cent.
According to reports, this is the company's first hike in three years.
Now, calls will cost 1.2 paise per second from the earlier 1 paise per second.
"Telecom is probably the only industry where despite increasing inflation, tariffs have been falling unabatedly. Continuously declining margins, high 3G & BWA auction prices, constrained spectrum and rural roll out aspirations leave us with little choice but to make some price corrections. We are committed to enhance value for our customers through continued investments in network, technology, customer experience and life enriching services," the company said.
Adding to the hike, Re 1 and Rs. 1.5 will be charged for local and national SMSes, respectively. Existing users will have to pay for new rates after their existing plans end.