Reportedly the three major private telecom players in india vodafone idea, Bharti airtel and reliance jio all hiked their prepaid tariffs, which came into effect last week. Meanwhile now both airtel and vodafone idea have announced that they are removing their FUP limits (Fair Usage Policy) on their unlimited plans, which makes calls within and outside the network free. Accordingly a FUP is usually put in place by a service provider because a small number of users may use an excessive amount of the service.
Furthermore the FUP limit is usually placed higher than the usage of the average user, and such that users don’t reach the limit. When an FUP is imposed, it seeks to address this imbalance, and beyond the ceiling, the speed is reduced (in case of data) or a charge is levied (in case of calls). Apparently all three companies had announced limited as well as unlimited plans, and their unlimited plans offered free calling within the network but had a FUP (Fair Usage Policy) limit on calls to other networks. Earlier, beyond the ceiling, calls would be charged per minute. When airtel and vodafone idea announced their hiked tariffs, both said that calls beyond the FUP would be charged at 6p/min. Now, they have both made announcements that this cap no longer applies.
airtel tweeted “We heard you! And we are making the change. From tomorrow, enjoy unlimited calling to any network in india with all our unlimited plans. No conditions apply". Apparently idea tweeted “We're always changing to give you the best. That's why we're giving you truly unlimited calls to any network in the country". As per the sc verdict, telecom operators have to shell out a whopping Rs 92,000 crore in total in past dues a huge chunk of which is owed by airtel and vodafone idea at a time when they are grappling with tough competition, debt pressure and shrinking revenues.