Indian Government has only one option to Tax its citizens – Indirect Tax at Source, as a pathetic 4% Indians pay Income Tax. The new regime under Narendra Modi has hiked the Service Tax by 200bps to 14% [Swach Bharat Cess still a overhang]. Our channel checks on tariff changes over the last couple of days suggest that Airtel has largely absorbed the recent increase in service tax in the prepaid segment leaving the net outgo for the subscriber unchanged. For Post-Paid subscribers, (<15% of total), the higher tax has been passed on as there is nothing much Airtel can do about it except raising Free On-Net call limits, if at all it wishes to do so. Continue reading Airtel absorbs Service Tax Hike for Pre-Paid Customers, Will Idea / Vodafone do ?
Tata DoCoMo disrupted the Indian Mobile Services market with Per Second billing in 2009 which led to the subsequent Tariff War over the next 2 years. This time around, India’s largest Wireless Carrier, Airtel is trying something on the Billing front where it aims to convert Pre-Paid subscribers to Post-Paid. Airtel has just 4.4% Post-Paid subscribers at the end of Jun-13 contributing around 18% of its mobile revenues. Continue reading Airtel Mobile myPlan aimed at Converting Pre-Paid base to Post-Paid