Mumbai: Vodafone India had already said a shift in the airwaves frequencies alloted to it to a higher band will put an additional cost burden of around Rs 10,000 crore on the company which will then be passed on to consumers, leading to tariff hike.

Following that, leading telecom operator Vodafone India on Tuesday raised its call rates by a steep 20 percent in Mumbai circle, a possible indication that cheap tariff would end sooner than later.
   
Vodafone has been offering a call rate of 1 paisa per second for both local as well as national calls.
    
In an SMS alert to its post-paid subscribers, Vodafone said local and STD rates will now be 1.2 paise per second. The new rates are effective from May bill cycle.
   
When contacted, Vodafone officially declined to comment on hike in call rates. "We do not comment on tariff structures," a Vodafone India spokesperson told.
   
Telecom operators have been offering cheap call rates, considered one of the lowest in the world, to garner more and more subscribers in an competitive environment.
     
The booming telecom industry ran into controversy after 2G spectrum scandal came to light. The Supreme Court had cancelled many lincences and had ordered auction of the radio-waves.
   
Industry players have warned of an increase in call rates after sector regulator Trai recommended a steep rise in spectrum price. A couple of large foreign companies have already declared their intension to quit India, and have taken massive write-downs in their books.

(JPN/Agencies)