India's leading telecom service provider, Bharti Airtel has increased its 2G data rates in the country in order to cope with the high cost of obtaining licence and related infrastructure costs.

The company increased its 1GB 2G data by 25 percent to Rs. 125. The plan was earlier priced below Rs. 100 in the country. The company said that he increase in tariff is relating to rate elasticity, customer demand and supporting cost structures.

Estimates show that 2G data is now one of the major sources of revenues for telecom service providers in the country. Airtel generated about Rs. 577 crore revenue from 2G data services during the quarter till September, 2012.

Indian telecom service providers are facing pressure on margins due to very cost of spectrum in the country and relatively low tariffs. The high level of competition with multiple telecom companies has made it difficult for them to improve profitability. Telecom firms had earlier indicated that the high costs of spectrum will force them to increase tariffs as they look to transfer higher costs to the customers.

Other telecoms including Idea Cellular and Vodafone are expected to announce increase in their tariff plans soon in the country.